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Which of the following is not a limitation of the Baumol Model? Question 1 options: assumes a constant disbursement rate, but in reality cash outflows
Which of the following is not a limitation of the Baumol Model? Question 1 options: assumes a constant disbursement rate, but in reality cash outflows occur at different times and different due dates etc. assumes no cash receipts during the projected period, but obviously cash is coming in and out on a frequent basis provides for no safety stock because it only it supposed to take only a short amount of time to sell marketable securities. allows a cash balance to move between an upper and lower boundary
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