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Consider a stock with average daily volume (Qt) 4,200 shares with 1,500,000 (Nt) total number of outstanding floating shares. The share current market price is
Consider a stock with average daily volume (Qt) 4,200 shares with 1,500,000 (Nt) total number of outstanding floating shares. The share current market price is $53.76. Assume, one of your clients hold 15,000 of these shares. To minimize trading impacts, the client's liquidation policy is set to 20% of the average daily market volume of the share.
b. Briefly explain steps needed to be followed in liquidity risk management.
b. Briefly explain steps needed to be followed in liquidity risk management.
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Step: 1
a Lets calculate the requested values step by step 1 Market Capitalization MC Market Capitalization is calculated by multiplying the current market price per share with the total number of outstanding ...
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
