If the standard deviation of annual returns is 19.8 percent and the number of years of observation is 107, what is the standard error?
A)4.23 percent
B)1.91 percent
C)0.47 percent
D)19.8 percent

Question

Quizplus · Accepted Answer

The formula for standard error (SE) is SE = standard deviation / square root of sample size. Plugging in the given values, we get SE = 19.8% / sqrt(107) = 1.91%. Therefore, the correct answer is choice B.

If the Standard Deviation of Annual Returns Is 19