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In the APT Model, What Is the Nonsystematic Standard Deviation

Question 26

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 18% and 250 securities?


A) 1.14%
B) 625%
C) 0.5%
D) 3.54%
E) 3.16%

Correct Answer:

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