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Assuming That the Interaffiliate Cash Flows Are Uncorrelated with One

Question 17

Multiple Choice

Assuming that the interaffiliate cash flows are uncorrelated with one another,calculate the minimum cash balance to have if the firm follows a conservative policy of having three standard deviations of cash for precautionary purposes. Assuming that the interaffiliate cash flows are uncorrelated with one another,calculate the minimum cash balance to have if the firm follows a conservative policy of having three standard deviations of cash for precautionary purposes.   A) $34,960.33 B) $314,642.65 C) $104,880.88 D) None of the above


A) $34,960.33
B) $314,642.65
C) $104,880.88
D) None of the above

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