35. humphrey's housing has been practicing cash management for some time by using the baumol model for determining cash balances. some time ago, the model called for an average balance (c*/2) of $500; at that time, the rate on marketable securities was 4 percent. a rapid increase in interest rates has driven the interest rate up to 9 percent. what is the appropriate average cash balance now? a. $200 b. $333 c. $414 d. $500 e. $666
