21. Which of the following is the most complete definition of liquidity? A. The speed at which investors can convert an investment to cash B. The difference between the best bid and ask prices (i.e. round trip trading cost) C. The fraction of shares available for trading during an average day D. The ability to convert an investment asset quickly to cash with minimal loss of value. 22. Which one of the following indexes captures the greatest portion of the US equity market capitalization? A. S&P 500 B. S&P 1500 C. Dow Jones Industrial Average D. Russell 3000 23. Which one of the following, holding all else constant, will lead a risk-averse investor to increase their allocation to the optimal risky portfolio? A. An increase in the risk-free rate B. An increase in the risk premium C. An increase in the variance of the risky portfolio D. An increase in the investor's risk aversion