Question: Question 4 (15 marks) The following data applies to B Ltd The minimum cash balance is 10,000. The variance of daily cash flows is 5,000,000.

Question 4 (15 marks) The following data applies to B Ltd

Question 4 (15 marks) The following data applies to B Ltd The minimum cash balance is 10,000. The variance of daily cash flows is 5,000,000. Standard deviation is 3,000 per day. The transaction cost for buying or selling securities is 75. The interest rate is 0,035% per day. Required Formulate a decision rule using the Miller-Orr model

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