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Hollywood shoes would like to maintain their cash account at a minimum level of $56000, but expect the standard deviation in net daily cash flows
Hollywood shoes would like to maintain their cash account at a minimum level of $56000, but expect the standard deviation in net daily cash flows to be $4600 the effective annual rate on marketable securities to be 6.25 percent per year, and the trading cost per sale or purchase of marketable securities to be $160 per transaction. What would be the optimal upper cash limit?
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