say you have a population distribution with a mean of 20 and standard deviation of 5. what is the mean of the sampling distribution of the mean? what is the standard error of the mean for a sample size of 4? Solution Mean of the sample mean will be the same (i.e distribution mean ) Standard error of mean for sample size (n=4) is = S.D/n sample mean = 20 and Standard error = 5/4 = 2.5.

1. Say you own an asset that had a total return last year of 15 percent. Assume the inflation rate last
year was 5.1 percent. What was your real return?
Solution
The real rate of return can be calculated with the use of following formula:
Real Return = (1+Nominal Rate of Return)/(1+Inflation) - 1
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