Based on a one factor model, if the average nonfactor risk (2ei) of all securities is 225, what is the nonfactor risk of a portfolio with equal weights assigned to its 10 securities 100 securities 1,000 securities ...

The nonfactor risk of a portfolio is given by Assuming that the securities in th ...

Based on a one-factor model, if the average nonfactor risk (2ei) of all securities is 225, what

Question:

Based on a one-factor model, if the average nonfactor risk (σ2ei) of all securities is 225, what is the nonfactor risk of a with equal weights assigned to its 10 securities? 100 securities? 1,000 securities?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...