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The coefficient of determination, R2, demonstrates that beta Question 4 options: has a low predictive power when applied to a portfolio of securities. is more

The coefficient of determination, R2, demonstrates that beta Question 4 options: has a low predictive power when applied to a portfolio of securities. is more effective when evaluating a portfolio rather than an individual security. is relatively unreliable when predicting the return fluctuation of a portfolio. generally explains 75% of the return fluctuation of an individual security.


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