Solved

In the APT Model, What Is the Nonsystematic Standard Deviation σ\sigma

Question 27

Multiple Choice

In the APT model, what is the nonsystematic standard deviation of an equally-weighted portfolio that has an average value of σ\sigma (ei) equal to 18% and 250 securities?


A) 1.14%
B) 625%
C) 0.5%
D) 3.54%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: In a multifactor APT model, the coefficients

Q14: Consider the one-factor APT. The variance of

Q24: Suppose you are working with two factor

Q28: Which of the following is(are) true regarding

Q30: Consider the multifactor APT.There are two independent

Q32: Advantage(s) of the APT is(are)<br>A)that the model

Q35: Consider the single factor APT. Portfolio A

Q42: A well-diversified portfolio is defined as<br>A) one

Q52: Consider the single factor APT. Portfolio A

Q61: Consider the one-factor APT. The variance of