One month liquidity index=10%*(.98/1)+90%*(.85/.92)=0.93 Liquidity index value lies between 0 to 1. Smaller the liquidity index signifies higher liquidity risk. Solution One month liquidity index=10%*(.98/1)+90%*(.85/.92)=0.93 Liquidity index value lies between 0 to 1. Smaller the liquidity index signifies higher liquidity risk..