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

Question

Quizplus · Accepted Answer

The formula for standard error is: 
Standard Error = Standard Deviation / √(Number of Observations)

Plugging in the values: 
Standard Error = 19.8% / √107 = 1.91%

Therefore, the answer is B) 1.91%.

If the Standard Deviation of Annual Returns Is 19