In contrast to the Baumol model,the Miller-Orr model:
A) includes both cash inflows and outflows.
B) assumes that the distribution of daily cash flows is normally distributed.
C) allows the cash inflows and outflows to fluctuate randomly from day to day.
D) All of the above.
E) None of the above.
Correct Answer:
Verified
Q6: Most large firms hold a cash balance
Q8: The lower cash limit,L,and the upper limit,H,are:
A)set
Q8: If a firm has achieved its target
Q9: Marketability risk is synonymous with:
A)maturity risk.
B)default risk.
C)liquidity
Q15: Examples of cash disbursements do not include:
A)
Q15: Cheques written by the firm are said
Q16: Which of the following money-market securities has
Q16: To be able to use the Miller-Orr
Q20: The Baumol model determines the optimal cash
Q20: The Baumol model determines the optimal cash
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