You run a regression for a stock's return on a market index and find the following Excel output:


________ % of the variance is explained by this regression.

A) 12
B) 35
C) 4.05
D) 80

Variance

A statistical measurement that represents the dispersion of a dataset relative to its mean, used to quantify the spread of data points.

Regression

A statistical method for estimating the relationships among variables, often used for prediction and forecasting in finance.