Coefficient of Determination R^2 Calculation

[bhar]

Hi
In the mock Exam question number - 10 - the solution for R^2 is mentioned as

True: Beta(P w.r.t. B) = correlation*vol(P)/vol(B), such that correlation = beta(P,B)*vol(B)/vol(P) and R^2 = Beta^2*vol(B)^2/vol(P)^2.
In this case, R^2 = 0.8650*1.4090%^2/1.3240%^2 = 0.8474

In the substitution for values for Beta, 0.865 is missing the ^2
But the final calculation is correct.

 

[David Harper CFA FRM]

Yes, agreed, thank you bhar!
cc: Suzanne Evans last line of of Mock A, #10, should read "In this case, R^2 = 0.8650^2*1.4090%^2/1.3240%^2 = 0.8474"