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Question Six (15 marks). The management of Mbekezeli Inc. has set safety cash balance of $50,000. The standard deviation () of the daily cash balance

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Question Six (15 marks). The management of Mbekezeli Inc. has set safety cash balance of $50,000. The standard deviation () of the daily cash balance during the last year was $37,500, and the transaction cost was $75. The company also has the opportunity to invest idle cash in marketable securities at an annual interest rate of 8%. Required: calculate the Return Point and Upper Limit

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