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A depository institution has the following assets in its portfolio: $23 million in cash reserves...

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Finance

A depository institution has the following assets in its portfolio: $23 million in cash reserves with the Reserve Bank, $21 million in T-notes and $58 million in mortgage loans. If the assets need to be liquidated at short notice, the depository institution will receive only 99 per cent of the fair market value of the T-notes and 82 per cent of the fair market value of the mortgage loans. Estimate the liquidity index for the portfolio. (round to four decimal places)

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