Financial Risk Manager Part 2

Ultimate access to all questions.

Ultimate access to all questions.

Explanation:

Liquidity duration = $\frac{Q_i}{(0.10 \times V_i)}$

$Q_i$ = Number of shares held in security i
$V_i$ = Daily volume of security i

Liquidity duration = $\frac{10,000}{(0.10 \times 100,000)} = 1$

Q.2549 A fund manager is concerned about his portfolio’s liquidity profile. He does not wish to exceed more than 10 percent of the daily volume in any given security holding. The daily volume of the security is 100,000 while the number of shares held by the manager is 10,000. Which of the following is closest to the liquidity duration of the security?

Exam-Like

Community

UAnonymous

Last updated: July 5, 2026 at 07:23

0.1

0.01

0.001