9. A risk manager wants to recommend a reduction in firm-wide risk. To achieve that reduction, the firm has to cut some positions. She decides to cut her positions rapidly, but to minimize the cost of doing so, she chooses to leave intact her least liquid position. If the following is the list of her positions, which position would she not cut?

On-the-run US Treasuries

Exchange traded eurodollar futures contracts

Large cap listed equities

Rated benchmark corporate bonds

Correct answer is D

Rated benchmark corporate bonds would have the least amount of liquidity. On-the-run US Treasuries, exchange traded eurodollar futures contracts and large cap listed equities are highly liquid assets.fficeffice" />

Reference: Christopher L. Culp, The Risk Management Process: Business Strategy and Tactics. Chapter 17.

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