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Calculate the spread and the upper limit according to Miller Orr Model if the minimum cash balance required at XYZ Ltd is Rs 30,000 and
Calculate the spread and the upper limit according to Miller Orr Model if the minimum cash balance required at XYZ Ltd is Rs 30,000 and transferring money to or from the bank costs Rs 50 per transaction. Inspection of daily cash flows over the past year suggests that the standard deviation is Rs 2,000 per day, and the interest rate is 0.01% per day. Explain Return point in Miller Orr Model.
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