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**Question 97** A portfolio manager runs a regression of monthly stock returns on four independent variables over 72 months. If the total sum of squares for the regression is 320 and the sum of squared errors is 140, the adjusted $R^2_a$ will be closest to: | Financial Risk Manager Part 1 Quiz - LeetQuiz

Explanation:

The first step is to solve for $R^2$ :

R^2 = \frac{320 - 140}{320} = \frac{180}{320} = 0.5625, \text{ or } 56.25\%

The next step is to plug in the value for $R^2$ and then solve for the adjusted $R^2_a$ :

R^2_a = 1 - \left[ \left( \frac{72 - 1}{72 - 4 - 1} \right) \times (1 - 0.5625) \right] = 0.5364, \text{ or } 53.64\%

(Book 2, Module 19.2, LO 19.c)

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Question 97

A portfolio manager runs a regression of monthly stock returns on four independent variables over 72 months. If the total sum of squares for the regression is 320 and the sum of squared errors is 140, the adjusted $R^2_a$ will be closest to:

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Financial Risk Manager Part 1

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Question 97 A portfolio manager runs a regression of monthly stock returns on four independent variables over 72 months. If the total sum of squares for the regression is 320 and the sum of squared errors is 140, the adjusted Ra2R^2_aRa2​ will be closest to:

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Question 97

A portfolio manager runs a regression of monthly stock returns on four independent variables over 72 months. If the total sum of squares for the regression is 320 and the sum of squared errors is 140, the adjusted $R^2_a$ will be closest to: