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

question 12

Multiple Choice

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

• A)12.5%
• B)625%
• C)4.47%
• D)3.54%

---

Definitions:

Middle-income

refers to individuals, families, or countries that fall between the economic classification of poor and wealthy, often characterized by moderate living standards and financial stability.

High-income

Refers to individuals or households that earn significantly above the average income level.

Child Support

Financial contributions required by law or court order to be paid by a non-custodial parent to support their children's upbringing.

Abuse Charges

Legal accusations involving the improper treatment or harm of another, encompassing physical, sexual, emotional, or psychological mistreatment.