Which of the following statements is CORRECT? 1.b. The typical R2 for a stock is about 0.94 and the typical R2 for a portfolio is about 0.6. 2.c. The typical R2 for a stock is about 0.3 and the typical R2 for a large portfolio is about 0.94. 3.d. The typical R2 for a stock is about 0.94 and the typical R2 for a portfolio is also about 0. 4.e. The typical R2 for a stock is about 0.6 and the typical R2 for a portfolio is also about 0.6. 5.a. The typical R2 for a stock is about 0.3 and the typical R2 for a portfolio is also about 0.3.

Which of the following statements is CORRECT? Answer : 2.c. The typical R2 for a stock is about 0.3 and the typical R2 for a large portfolio is about 0.94. Explanation : The R2 represents the percentage of variance,i.e.the percentage of stock variation that is explained by the market. The R2 represents share variance.R2 of the stock of 0.3 has an R2 of 0.94 in a portfolio.

Answered: Which of the following statements is…

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

6th Edition

ISBN:9781337111348

Author:Bruce Crauder, Benny Evans, Alan Noell

Publisher:Bruce Crauder, Benny Evans, Alan Noell

Chapter3: Straight Lines And Linear Functions

Section3.3: Modeling Data With Linear Functions

Problem 17SBE

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Which of the following statements is CORRECT?

	1.	b. The typical R² for a stock is about 0.94 and the typical R² for a portfolio is about 0.6.
	2.	c. The typical R² for a stock is about 0.3 and the typical R² for a large portfolio is about 0.94.
	3.	d. The typical R² for a stock is about 0.94 and the typical R² for a portfolio is also about 0.
	4.	e. The typical R² for a stock is about 0.6 and the typical R² for a portfolio is also about 0.6.
	5.	a. The typical R² for a stock is about 0.3 and the typical R² for a portfolio is also about 0.3.