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 ...
Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Thomas J Catalano is a CFP and Registered Investment Adviser ...
R-squared reflects the percentage of an investment's movements that can be explained by movements in its benchmark index. A higher R-squared indicates a more useful beta figure, while a lower ...