Solved

In the APT Model, What Is the Nonsystematic Standard Deviation

Question 40

Multiple Choice

In the APT model, what is the nonsystematic standard deviation of an equally-weighted portfolio that has an average value of σ(ei) equal to 20% and 40 securities?


A) 12.5%
B) 625%
C) 0.5%
D) 3.54%
E) 3.16%

Correct Answer:

verifed

Verified

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

Related Questions

Q35: Consider the single factor APT. Portfolio A

Q36: The market return is 11% and the

Q37: In a multifactor APT model, the coefficients

Q38: The market return is 12% and the

Q39: Consider a well-diversified portfolio, A, in a

Q41: The market return is 11% and the

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

Q43: Multifactor models seek to improve the performance

Q44: The market return is 10% and the

Q45: Which of the following is true about