- CFA Exams
- CFA Exam: Level II 2021
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 3. The standard error of estimate and the coefficient of determination

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**CFA Practice Question**

For a data collection of x and y scores, if the r-value is -0.8 then the percentage of variation in variable y due to variable x is ______.

B. -0.8%

C. -80%

A. 64%

B. -0.8%

C. -80%

Correct Answer: A

The percentage of variation in variable y due to variable x is r

^{2}. An r-value of -0.8 yields r^{2}= 0.64 or 64%. So, the percentage of variation in variable y due to variable x is 64%.###
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