AuthorTopic: Std deviation and Std error
@2015-03-16 03:28:02
I' having issues with reading 9 question 11, in level one. The question stipulates as below -

"Basing your estimate of future-period monthly return parameters on the sample mean and standard deviation for the period January 1994 to December 1996, construct a 90 percent confidence interval for the monthly return on a large-cap blend fund. Assume fund returns are normally distributed."

There is a table that proceeds this with the relevant data. The solution uses the standard deviation instead of the standard error in the calculating the confidence interval - Despite this being a sample! I would, really, really appreciate if someone could elaborate on why they use standard deviation instead of standard error.

As far as I can tell this is the opposite logic, compared to answers shown in later readings such as practice problem 3b, reading 10. Please help, thanks in advance.

CFA Discussion Topic: Std deviation and Std error

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!