- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 3. Standard Error of the Sample Mean

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**CFA Practice Question**

An analyst wants to determine how growth managers performed last year. He assumes that the population cross-sectional standard deviation of growth manager return is 8%; the sample size selected is 40. Determine the standard error of the sample mean. Assume the returns are independent across managers:

B. 1.265

C. 1.600

A. 1.125

B. 1.265

C. 1.600

Correct Answer: B

8/40

^{1/2}= 1.265###
**User Contributed Comments**
3

User |
Comment |
---|---|

cleopatraliao |
the unit is worth paying attention to |

maryprz14 |
so agree |

gigi0818 |
Why use 8 instead of 8%? |