Liquidity Level or Liquidity Risk? Evidence from the Financial Crisis PoorSatisfactoryGoodVery GoodExcellent Average: 3 (1 rating) Log in to rate this article. Financial Analysts Journal May/June 2011, Vol. 67, No. 3, 12 pages Source: CFA InstituteXiaoxia Lou Ronnie Sadka Read Listen Abstract Although generally considered safe assets, liquid stocks underperformed illiquid stocks during the financial crisis of 2008–2009. The performance of stocks during the crisis can be better explained by their historical liquidity betas (risk) than by their historical liquidity levels. Stocks with different historical liquidity levels did not experience different returns after controlling for liquidity risk. The authors’ findings highlight the importance of accounting for both liquidity level and liquidity risk in risk management applications. Self-test View more information Topics Equity Investments | Portfolio Management : Equity Portfolio Management Strategies | Risk Management : Portfolio Risk Management Price US$0.00 Member | US$15.00 Candidate | US$15.00 Nonmember Credits · About the CE Program What are credits? Who knows. 1 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: MarketPsych: How to Manage Fear and Build Your Investor Identity This practitioner-oriented book takes the subject of behavioral finance from the quaint and theoretical to the powerful and practical. ... More Buy-Sell Agreements for Closely Held and Family Business Owners Buy-sell agreements designed for private business owners to create a market and set a price for their ownership interests in the case of ... More Containing Systemic Risk: The Road to Reform This report focuses on the steps that must be taken by the private sector to reduce the frequency and/or severity of future financial ... More Loading ...