R-squared in regression analysis represents:

A The slope

B The proportion of variance in the dependent variable explained by the independent variable(s)

C The intercept

D The standard error

✓ Correct Answer: Option B

R² ranges from 0 to 1 and indicates how well the model explains variability in the dependent variable.

💡 Why is B) the correct answer?

The correct answer to the question "R-squared in regression analysis represents:" is Option B: The proportion of variance in the dependent variable explained by the independent variable(s).

The other options — A) The slope, C) The intercept, D) The standard error — are incorrect for this CFA Exam Prep question. As explained above: R² ranges from 0 to 1 and indicates how well the model explains variability in the dependent variable.

📚 About This CFA Exam Prep Practice Question

This 2-level CFA Exam Prep question from the Quantitative Methods topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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R-squared in regression analysis represents:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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