>25% R2 considered perfect substitute

Saw this in Schweser Vol 2 Exam 1 AM. Is this in curriculum?

I am just scred of such answers in schweser. I really don’t know where they find such things… Hey btw I think we are moving together. Have you completed the Vol2 Exam 1 PM?

not yet. still checking my lessons from exam 1 am.

sticky Wrote: ------------------------------------------------------- > not yet. still checking my lessons from exam 1 > am. Don’t you find it difficult to allocate marks since the scweser answers are a bit too verbose? I am marking it realy conservatively and am scared to total it? :slight_smile:

I would say closer to >75% R^2 is closer to perfect substitute, you would think a corelation fo +1 would be a “Perfect Substitute” which would be 100% R^2, so 0.87 correlation is 75% R^2, but a 25% r^2 is only .50 correlation…