Hi, I would appreciate if somebody can help me with 2010 CFAI mock exam afternoon session problem 40. I understand the calcualtion of the null hypothesis, however i have no clue how they calcualted the standard error. I went through my notes, and i could not figure it out. Usually the standard error is given in a problem. Thanks
The standard error is calculated from the coefficient and the given t-statistic…just divide the coefficient by the t-stat and you get the standard error.