QUESTION 4 The management of a large firm, WE Lovett limited has been concerned for some time about the efficiency of its cash management policy, and has engaged your firm for expert financial advice on the matter. a detailed anal ysis of lovett's books shows that its daily net cash flows vary randomly, with a mean of $o and a standard deviation of $25 000• QUESTION 4 • • The management of a large firm, W.E. Lovett Limited, has been concerned for some time about the efficiency of its cash management policy, and has engaged your firm for expert financial advice on the matter. A detailed analysis of Lovett's books shows that its daily net cash flows vary randomly, with a mean of $0 and a standard deviation of $25 000. •