Choose the one that is NOT a drawback of the Baumol model: The opportunity cost of holding cash is known and constant Cash balances are assumed to be forecasted with high certainty Cash balances are assumed to follow a random process Payments occur uniformly over a period of time Which of the following is CORRECT regarding the opportunity cost of holding cash? It is high when trading costs are high All the other answers are correct It is increasing in the size of the cash balance Higher opportunity costs are associated with lower rates of return in the market