D Question 6 15 pts A client of NEXT Financial Group (a top brokerage firm) seeks to buy 250.000 shares (X=250,000) in smaller parcels to minimize his total execution costs B. These execution costs B include both order processing costs (ie, F per transaction) and market impact (slippage) costs that are increasing in the size of each of the n equal-size transactions. NEXT Financial Group uses a market impact model that estimates the slippage costs of each of the n equal-sized executions c=X with function Sevc, where the coefficient v and exponent m are related to the liquidity of the security to be purchased or sold. In this case, the per-transaction cost B is estimated to have a fixed component F (order processing costs) and an increasing variable cost component vc" =vx(this is the market impact component of the execution costs): B = F +v(87) ( = n Suppose that broker analysts have estimated F to be 50.02 per order, based on knowledge of order processing costs, and v and m to be 0.00005 and 12. respectively What is the optimal number of transactions? 0 131 0 262 O 312 O 529