Ultimate access to all questions.
Answer-first summary for fast verification
Answer: Security A
To determine which security takes the longest to liquidate, we need to calculate the liquidation time for each security using the formula: **Liquidation Time (days) = Shares in Fund / (Average Daily Trading Volume × Maximum Daily Volume Percentage)** Let's calculate for each security: **Security A:** - Shares: 500,000 - Average Daily Volume: 522,000 - Maximum Daily Volume: 22% - Daily liquidation capacity: 522,000 × 22% = 114,840 shares - Liquidation days: 500,000 / 114,840 = **4.35 days** **Security B:** - Shares: 420,000 - Average Daily Volume: 1,328,000 - Maximum Daily Volume: 12% - Daily liquidation capacity: 1,328,000 × 12% = 159,360 shares - Liquidation days: 420,000 / 159,360 = **2.64 days** **Security C:** - Shares: 256,000 - Average Daily Volume: 710,000 - Maximum Daily Volume: 18% - Daily liquidation capacity: 710,000 × 18% = 127,800 shares - Liquidation days: 256,000 / 127,800 = **2.00 days** **Security D:** - Shares: 640,000 - Average Daily Volume: 848,000 - Maximum Daily Volume: 20% - Daily liquidation capacity: 848,000 × 20% = 169,600 shares - Liquidation days: 640,000 / 169,600 = **3.77 days** **Comparison:** - Security A: 4.35 days - Security B: 2.64 days - Security C: 2.00 days - Security D: 3.77 days **Security A takes the longest at 4.35 days**, making it the correct answer.
Author: LeetQuiz .
A hedge fund manager is concerned about a potential increase in investor redemptions and wants to assess the effects of such an event on the fund's liquidity. The manager asks a junior analyst to estimate the average number of days required to liquidate certain securities in the fund. The analyst uses the information presented below to make this estimation for four securities:
| Security | Market value of security in the fund (CNY million) | Shares of security in the fund | Average daily trading volume of security | Maximum daily volume allowed for liquidation (expressed as a percentage of average daily trading volume) |
|---|---|---|---|---|
| A | 93.00 | 500,000 | 522,000 | 22% |
| B | 173.04 | 420,000 | 1,328,000 | 12% |
| C | 58.88 | 256,000 | 710,000 | 18% |
| D | 28.80 | 640,000 | 848,000 | 20% |
Which of the four securities listed above is expected to take the longest to liquidate?
A
Security A
B
Security B
C
Security C
D
Security D
No comments yet.