Question: Are the two following statements correct? Statement 1: The R-squared of a regression equation with one independent variable and one dependent variable will equal the
Are the two following statements correct? Statement 1: The R-squared of a regression equation with one independent variable and one dependent variable will equal the variance of the dependent variable divided by the variance of the independent variable. Statement 2: The geometric average return is generally less than or equal to the arithmetic average return, and the dollar-weighted return is generally less than or equal to the geometric average return.
A.
Yes
B.
No. Both statements are incorrect.
C.
No. Only statement 1 is correct.
D.
No. Only statement 2 is correct.
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