Question: 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

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?

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