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Suppose Abigail Saving's Bank liquidity manager estimates that the bank will experience a $375 million liquidity deficit next month with a probability of 15%, a
Suppose Abigail Saving's Bank liquidity manager estimates that the bank will experience a $375 million liquidity deficit next month with a probability of 15%, a $200 million liquidity deficit with a probability of 35%, a 100 million liquidity surplus of 35%, and a $250 million liquidity surplus bearing a probability of 15%/. What is the saving's bank expected liquidity requirement? What should management do?
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