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**CFA Practice Question**

What does a coefficient of correlation of 0.70 mean?

A. 70% of the variation in one variable is explained by the other

B. Coefficient of determination is 0.49

C. None of these answers

**Explanation:**The coefficient of correlation, r, is just the square root of the coefficient of determination r-squared.

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**User Contributed Comments**
1

User |
Comment |
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Ling |
B is only true when it is a regression with one independent variable. |