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8. A formula in financial analysis is the following: Return on equity = net profit margin total asset turnover equity multiplier. Suppose that the equity

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8. A formula in financial analysis is the following: Return on equity = net profit margin total asset turnover equity multiplier. Suppose that the equity multiplier is fixed at 4.0 , but that the net profit margin is normally distributed with a mean of 3.8% and a standard deviation of 0.4%, and that the total asset turnover is normally distributed with a mean of 1.5 and a standard deviation of 0.2 . Set up and conduet a sampling experiment similar to Example 12.6 to find the distribution of the return on equity. Show your results as a histogram to help explain your analysis and coclusions. Figure 12.6 Sampling Experiment for Profitability Index

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