What Effect Does Decreasing the Standard Deviation in Daily Cash

question 97

Multiple Choice

What effect does decreasing the standard deviation in daily cash flows have on the cash return point in the Miller-Orr model?

• A) It will cause the cash return point to increase.
• B) It will cause the cash return point to decrease.
• C) It has no impact on the cash return point.
• D) It will cause the cash return point to first decrease, then increase.

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Definitions:

Identity Need

The psychological requirement for a sense of coherence and continuity in one's self-concept, important for mental health and well-being.

Fromm

Erich Fromm, a psychoanalyst and social philosopher, known for his theories on human nature, freedom, and modern society, including the need for belonging and love as central human drives.

Excitation And Stimulation

The processes through which external or internal factors activate physiological or psychological responses, leading to increased alertness, arousal, or activity.

Fromm

Erich Fromm was a psychoanalyst and social psychologist known for his theories on the relationship between society and the individual, especially concerning freedom, love, and human nature.