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

A formula in financial analysis is Return on
A formula in financial analysis is Return on equity = net profit margin x total asset turnover x equity multiplier. Suppose that the equity multiplier is fixed at 3.5, 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 1.3 and a standard deviation of 0.2. Set up and conduct a sampling experiment to find the distribution of the return on equity. Show how the results as a histogram would help explain your analysis and conclusions. Place "Equity Multiplier," "Net Profit Margin Mean," "Net Profit Margin Std Dev," "Total Asset Mean," and "Total Asset Std Dev" in column Ain rows 1, 2, 3, 4, and 5, respectively, and place their corresponding values in column B. Place the column headers "Net Profit Margin,\" "Total Asset Turnover,\" and "Return on Equity\" in cells C1, D1, and E1, respectively. To generate random numbers for the net profit margin based on the normal distribution, in the cells in for the total asset turnover based on the below D1. To calculate return on equity d Generate one thousand such random val The histogram will be he "Net Profit Margin" column, enter the formula =NORM.INV/( istribution values, in t RAND() normal distribution, in the cells in the "Total Asset Turnover\" column, enter the formula =NORM.INV( $B%2,$B%$3)inthe cells in column C below C1. To generate random numbers RAND() $BS%4 .$B$%5)inthe cellsin column D e cells in column E below E1, multiply pairs of values in the "Net Profit" and "Total Asset Turnover" columns by the value in cell $B$1 ues for the net profit margin and total asset distribution and construct a histogram for the "Return on Equity\" values. Describe how such a histogram would look. v and v with a mean v distribution mean, and equity multiplier, t (Type an integer or a decimal. Do not round.) e product of which is the value found by v the net profit margin distribution mean, the total asset turnover

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