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A return series with 350 observations has a sample mean of 30% and a standard deviation of 25%. The standard error of the sample mean is closest to:
A. 0.06%
B. 1.34%
C. 0.95%
D. 3.87%
Answer: B
The standard error of the sample mean is the standard deviation of the sample divided by the square root of the number of observations in the sample. In this case, .
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