The coefficient of determination, R², demonstrates that beta A) has a low predictive power when applied to a portfolio of securities. B) is more effective when evaluating a portfolio rather than an individual security. C) is relatively unreliable when predicting the return fluctuation of a portfolio. D) generally explains 75% of the return fluctuation of an individual security.

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The Answer of The coefficient of determination, R², demonstrates that beta A) has a low predictive power when applied to a portfolio of securities. B) is more effective when evaluating a portfolio rather than an individual security. C) is relatively unreliable when predicting the return fluctuation of a portfolio. D) generally explains 75% of the return fluctuation of an individual security.

The Coefficient of Determination, R2, Demonstrates That Beta

The Coefficient of Determination, R², Demonstrates That Beta