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Isla, a conservative money manager, has a liquidity ratio of 9 months and current ratio of 5. Why is this not ideal? Isla has insufficient
Isla, a conservative money manager, has a liquidity ratio of 9 months and current ratio of 5. Why is this not ideal?
- Isla has insufficient liquidity to meet unexpected expenses.
- Isla has excess liquidity, likely earning a low return.
- Isla should maintain her liquidity in the form of a line of credit.
- Isla has not been able to establish the minimum emergency fund.
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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
