The __________ indicates the percentage of the variance in the portfolio's returns explained by the market's returns.
A)standard deviation
B)coefficient of determination
C)beta
D)alpha

Question

Quizplus · Accepted Answer

The coefficient of determination, also known as R-squared, is a measure of how well the regression line (or in this case, the portfolio's returns) fits the data points (market's returns). It indicates the percentage of the variance in the portfolio's returns explained by the market's returns.

The __________ Indicates the Percentage of the Variance in the Portfolio's