After you run the following time$-$series regression:

$R_{t+1}=+R{M}_t+lo{n}_{t+1}$

$,$ where $R_t$ is the return of stock A in month $t+1,R{M}_t$ is the stock market

return in month $t.$ You find that

hat$()=0\mathrm{.}05$

and

hat$()=0\mathrm{.}3$

$.$ Suppose the variance of stock A$\text{'}$s actual return in your sample is $0\mathrm{.}05,$ and the

variance of stock A$\text{'}$s predicted return in your sample is $0\mathrm{.}03.$ What is the R$-$squared

of your model?

$50\%$

$65\%$

$60\%$

$55\%$