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Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows to...
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Hollywood Shoes would like to maintain their cash account at a minimum

level of $66,000, but expect the standard deviation in net daily cash flows to be $5,600; the effective annual rate on marketable securities to be 6.25% per year; and the trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)

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Subject: Business, Finance

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