Liquidity is the ability to buy or sell an investment quickly without substantially affecting the investment's value. True or False?
Understand the Problem
The question is asking whether the statement about liquidity is true or false. It defines liquidity as the ability to buy or sell an investment quickly without significantly affecting its value.
Answer
True.
The final answer is True. Liquidity refers to the ability to buy or sell an investment quickly without substantially affecting the investment's value.
Answer for screen readers
The final answer is True. Liquidity refers to the ability to buy or sell an investment quickly without substantially affecting the investment's value.
More Information
Liquidity means the ease with which an investment can be converted into cash without causing a significant change in its price. This is crucial for managing risk and maintaining flexibility in portfolio management.
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