CFA Practice Question

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.

User Contributed Comments 1

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