Question

How to Calculate Miller Orr Model with Casio fx-100 MS calculator

I have been trying to calculate Miller Orr Model with my Casio fx-100MS calculator. But everytime I calculate the result doesn't match with the expected outcome. 

Information: 

Transaction Cost: $25

Standard Deviation = 1500

Interest Rate = 0.03%

My Input in Calculator: 

3((3/4x25x2250000)/0.0003)^1/3 = Outcome: 1.40625^11

 

But the answer is 15,600

 

Please if anyone can help me to operate this calculator

Answer 1

Hi, The formula should be: 3((3*transaction costs*SD^2/(4*interest rate))^(1/3)) 3*((3*25*1500^2/(4*0.0003))^(1/3)) = 15600