There is need for liquidity management because demand for liquidity during a particular year is rarely equal to supply of liquidity during the year Select one: O True O False

Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money, we will have the present value _______ discounting future cash flow by time and risk discounting factor. Therefore, CEQ is always ______ than the expected cash flow. Find the correct choice to fill the blanks. A. time varying, same as, lowerB. constant, same as, lower C. time varying, higher than, lowerD. constant, same as, higher

Over time, a portfolio manager’s cumulated trade implementation shortfall will equal:   a. Cumulated direct transaction costs and liquidity costs   b. Cumulated market price variations associated with the time delays between investment decisions and trade executions   c. Cumulated management costs (salaries, overheads, etc.)   d. (a) + (b)   e. (a) + (b) + (c)

Define negative working capital. Is a negative working capital a sign of illiquidity or of liquidity? Use the framework identified by Fazzari and Petersen, 1993