When people invest in mutual funds, they usually look at returns, ratings and past performance. But there is one number that quietly explains how predictable a fund’s behaviour is — the R-squared ...
R-squared values range from 0 to 1, indicating the fit and explanatory power of a regression model. Values below 0.3 suggest weak explanatory power; above 0.7 indicate strong relationships. In finance ...
Mary Hall is a editor for Investopedia's Advisor Insights, in addition to being the editor of several books and doctoral papers. Mary received her bachelor's in English from Kent State University with ...