4. XYZ Company has a policy of maintaining a minimum cash balance of 50 lakh. The standard...

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4. XYZ Company has a policy of maintaining a minimum cash balance of 50 lakh. The standard deviation of the company's daily cash flows is 20 lakh. The annual interest rate is 14 per cent. The transaction cost of buying or selling securities is 150 per transaction. Determine XYZ's upper control limit and the return point as per the Miller-Orr model.

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