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HotFoot Shoes would like to maintain its cash account at a minimum level of $45,000, but expects the standard deviation in net daily cash flows

HotFoot Shoes would like to maintain its cash account at a minimum level of $45,000, but expects the standard deviation in net daily cash flows to be $6,000, the effective annual rate on marketable securities to be 5.5 percent per year, and the trading cost per sale or purchase of marketable securities to be $100 per transaction. What will be its optimal cash return point?

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