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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