Which of the following statements is true about r2?
A) It is also called the coefficient of correlation.
B) It is also called the coefficient of determination.
C) It represents the percent of variation in X that is explained by Y.
D) It represents the percent of variation in the error that is explained by Y.
E) It ranges in value from -1 to + 1.
B
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Joel is a limited partner in the Snow Bird Limited Partnership. He invested $5,000 to buy his
interest. Joel is one of ten partners, two of whom are general partners. Snow Bird is now insolvent, with debts exceeding assets by $96,000. The partnership creditors sue all the partners for these debts. How much additional money must Joel contribute? A) $96,000 B) $9,600 C) $5,000 D) $0 E) $4,600
A well-diversified portfolio includes investments in 50 securities. The portfolio's systematic risk is
likely to be about A) 50% of the total risk. B) 25% of the total risk. C) 40% of the total risk. D) zero because risk is eliminated with a portfolio of 50 securities or more.