Dictionary of Finance and Investment Terms: r-squared
r-squared
mutual fund term that indicates, on a scale of 0 to 100, the percentage of a fund's performance that is explained by movements of its benchmark index. An S&P 500 index fund would thus have an R-squared at or close to 100. R-squared is useful in evaluating the significance of beta. The higher the R-squared, the more meaningful the beta.
