
Explanation:
Liquidity duration =
Number of shares held in security i
Daily volume of security i
Liquidity duration =
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Q.2531 A fund manager is concerned about his portfolio’s liquidity profile. He does not wish to exceed more than 15 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?
A
0.67
B
0.015
C
0.15
D
0.1