According to Baumol’s model, the holding cost for cash management is calculated by

According to Baumol’s model, the holding cost for cash management is calculated by

Q. According to Baumol’s model, the holding cost for cash management is calculated by –

A.            K(C/2)

B.            C(T/C)

C.            √2CT/K

D.            K(C/2) + C(T/C)

Answer: K(C/2)

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