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Which one of the following statements is true? Question 2 options: The Orr-Miller model is an improvement over the Baumol model as it allows random
Which one of the following statements is true? Question 2 options: The Orr-Miller model is an improvement over the Baumol model as it allows random cash inflows and outflows. The Baumol model is superior to the Orr-Miller model as it allows for a variable cash disbursement rate. The Orr-Miller model provides for no safety stock because it only it supposed to take only a short amount of time to sell marketable securities. The Baumol model allows the cash balance to move between an upper and lower boundary
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