Does anyone know how you get the 3rd square of a number on a calculator??? Refer to example 3 of the Miller Orr Model in the lecture video.
Do you have a scientific calculator?
You need one for this and most will have a special button – like a square root symbol, but with a 3 on it.
Yes I have a scientific calculator but it does not have a square root symbol with a 3 on it??
In that case, does it have a square root symbol with an x on it?
Or a key with a X to the power of y on it? It actually written x^y in the calculator included with MS windows. If this is the case you enter the number hit the x^y key then enter -3 and hit =
you need scientific calculator, full stop.
you can’t take PC or mobile phone into exam hall,
I’m not suggesting they use a PC just explaining a very common way roots above the squared roots are computed on a scientific calculator. Neither the HP, Casio or TI scientific calculators have a key as you describe in all of these you must use the” to the power off key” and then a negative 3 to get a cubed root.
I’m assuming that since they’re posting on here they are most likely on a MS Windows PC and would therefore be able to check this out immediately using the inbuilt calculator – so they would know what to look for on an actual scientific calculator.
Perhaps you could instead try using the X^Y key and put in 0.3333333333… This should give the equivalent answer to finding the cube root.
@ joannemcdonnell what you can do is put it on the calculator like this:
(3/4 x transaction cost x variance of cash flows)^(1/3)
…and then the figure you get, you multiply it by 3
for instance in example 3:
(3/4 x 5 x 2000² ÷ 0.00014)^(1/3) = 4750
…then you take 4750 and multiply it by 3, you will obtain 14250
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