CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

If the coefficient of correlation equals 0.61, it indicates that the proportion of the variation in the dependent variable explained by the variation in the independent variable is
A. 37%
B. 61%
C. 98%
Explanation: 0.61 x 0.61 = 37%.

User Contributed Comments 3

User Comment
shiva5555 wtf? is the coefficient already squared?
MathewBinu In models with one only indepedent variable, the coeffiecent of determination(R^2) can be calculated simply as equals r^2 (correlation coefficent. The question is the definition of R^2.
jonan616 coefficient of correlation = r
coefficient of determination = r^2
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