Explaining the Miller-Orr Model of Cash Management | Corporate Finance

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  • เผยแพร่เมื่อ 1 ธ.ค. 2024

ความคิดเห็น • 6

  • @moritzmunnich3672
    @moritzmunnich3672 2 ปีที่แล้ว +2

    For the upper limit you used the formular 3z+L I have the formular with 3z-2L. Are there several ways to calculate the upper limit?

    • @jakubosobka4414
      @jakubosobka4414 2 ปีที่แล้ว

      Actually no - meaning certainly 3Z+L is not giving correct answers. The error here is that in the upper limit formula he used 3*Z and Z as the retun point, but what it should really be in there is just the spread (H-L = 3* cube root (...)).
      So all in all there are two ways here:
      either
      1. UL = 3*RP(return point) - 2LL
      or
      2. UL = spread + LL, where spread = 3* (the cube root).

    • @ermig319
      @ermig319 2 ปีที่แล้ว

      Z= the distance b/n the Upper and the Lower Limits (Z) to calculate the upper limit we use the formula 3Z + L

  • @enlight2
    @enlight2 ปีที่แล้ว

    what app do you use to make these illustrations?

  • @sofiawalley2947
    @sofiawalley2947 2 ปีที่แล้ว

    What are the defects of this model please ?