The Miller- Orr model minimises the opportunity cost of holding cash and the frequency of converting securities into cash.

Name: The Miller- Orr model minimises the opportunity cost of holding cash and the frequency of converting securities into cash.
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The Miller-Orr model aims to minimize both the opportunity cost of holding cash (by setting a target cash balance) and the frequency of converting securities into cash (by setting upper and lower control limits).

The Miller- Orr Model Minimises the Opportunity Cost of Holding