Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

footgrint: The ently is looking into possbly pablishing two new book ranges - one a fictions: book range datied Fable Fights') and the other a

image text in transcribed
footgrint: The ently is looking into possbly pablishing two new book ranges - one a fictions: book range datied Fable Fights') and the other a biography book range (The Joumey? B. Both book ranges with be mode avalable in both priet and electronic format rebooks'? Fable Fights The various possiele setums that could potentally be generated by Neveriand from imesting into the Fable Flight range have been given below together with the possbilfy of generating that specific retum. The Journey The Joumey book range is expected bo deliver a tetum of 21.85 but a deviason of 2.25% may potentially preval. Additional information: - Neverland has R12000 000 worth of funding avaluble to invest into these potentiat book ranges and is aiming to invest RT400000 into fable Fights and the remainder into The Joumey. This wil resue in covariance of 395. - Both the Fable Fights and The Joumey book ranges' oulcemes are expected to insicate a nomal distibution patiern. 58 REQURED: 2.1. Assist Neverland (Pty) Lid in determining the expected rate of retum and the standard deviation of the Fable Flights book range. (14 marks) 2.2. Assist Neveriland (Pty) Lad by calculating the range in which The Journey books' actual expected tetum is ibely to be within, we to a 95.5% accuracy (9 maks) 2.3. Assist Nevertand (Pty) Ltd in debermining the risk attached to investing into both book ranges in the manner that the entify indicated. Debermine this risk by calculating the applicable standard deviation for the porstolie. Show it caiculations. (14 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Quality Auditing

Authors: B. Scott Parsowith

1st Edition

0873892402, 978-0873892407

More Books

Students also viewed these Accounting questions

Question

4. Why does happiness resist easy change?

Answered: 1 week ago