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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.

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One month liquidity index=10(.981)+90(.85.92)=0.93Liquidity .pdf

  • 1. 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.