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Assignment X4.10

C

code9063

Member
In (iii)
The answer says there may be liquidity problems.

Aren't equities liquid?
Is it because equities can become worthless?
 
Equities are more liquid than some other types of investment (eg direct property). However, there will still be some liquidity risk. For example, you may need to sell the equities just after there has been a large fall in the stock market.
 
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