A. Bramwell Ltd has experienced a stochastic demand for its product, which results in fluctuating cash balances randomly. The following information is supplied: 1. Fixed cost of a securities transaction $100 2. Standard deviation of daily net cash flows $1,000 3. Interest rate on marketable securities 6% Required: Determine: i. the daily opportunity cost interest rate) and the variance of daily cash flow. (2 marks) ii. the optimal cash and average cash balance (3 marks) iii. the upper and lower limit of cash balance (2 marks) iv. State the amount of short-term securities to be purchase or sold once the upper limit or lower limit is reached. (2 marks)