30

A depository institution has the following assets in its portfolio: $19 million in cash reserves with the Reserve Bank, $24 million in T-notes and $60 million in mortgage loans. If the assets need to be liquidated at short notice, the depository institution will receive only 99 per cent of the fair market value of the T-notes and 87 per cent of the fair market value of the mortgage loans. Estimate the liquidity index for the portfolio. (round to four decimal places)