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…

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter7: Applying Fractions

Section7.2: Proportions

Problem 47WE

See similar textbooks

Related questions

Question

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.