LIQUIDITY
Discussion post (2-474)
I just want you to type your own opinions on your own words without sources, its a discussion. Answer these two related questions in different word files, 2 word files in total about 2-3 paragraphs each one. READ the discussions carefully and type your thoughts and opinions on your own words carefully:Topics:
1- Discuss why you would expect a difference in the correlation of returns portfolio risk. Specifically, why would you expect low correlation in the rates of return of domestic and foreign securities?
2- Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset, and discuss why they are considered liquid and illiquid.
*note* this is a finance class.
Answer preview
- Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset and discuss why they are considered liquid and illiquid.
The liquidity of an asset is described as the ability of the asset to be easily converted into cash within a short period of time. Liquid assets are equivalent to cash itself since the holder of the asset can convert them into cash easily and quickly for the purpose of getting the cash needed in a transaction exchange. Several…
(350 words)