NUMERICAL ALGORITHM OF EVALUATING THE LIQUIDITY OF RISK ASSETS IN NON-INSTITUTIONAL INVESTOR’S FINANCIAL PORTFOLIO
The method of evaluating the liquidity of risk assets in a non-institutional investor’s financial portfolio is considered. A non-institutional investor is a non-professional agent of the Russian stock market for whom the level of liquidity is as important as risk and return. The major method of evaluating the liquidity that was created by specialists from MICEX is presented. Necessary definitions and methods of calculating indicators that are using in this method are given; the numerical algorithm of evaluating the liquidity of risk assets is justified. The evaluations of the securities that differ in risk and return are considered. The level of the liquidity that is defined using this algorithm is compared with the rate of current liquidity of company’s balance which is not the main indicator of assess of the company’s financial sustainability. The indicators of the liquidity of emitter’s securities and the current liquidity of his balance are presented. The results led to the conclusion that this method of evaluating the liquidity of risk assets is correct. The analysis that was carried out helps to find the correlation between the liquidity of financial assets and the current liquidity of emitter’s balance. The analysis reflects the practice of choosing the investment decision by taking into consideration the company’s current financial and economical sustainability.