Gold Star Co. and Silver Star Co. both manage their cash flows according to the Miler-Orr kodel. Gold Star's daily cash flow is controlled between $ 100,000 and $ 200,000 where as Silver Star's daily cash flow is controlled between $ 150,000 and $ 300,000. the annual interest rates Gold Star and Silver Star can get are 10 percent and 9 percent, respectively and the costs per transaction of trading securities are $ 2,000 and $ 2,500, respectively.

a. what are their respective target cash balance?

b. which firm's daily cash flow is more volatile?