A Method of Determining Cash Reserve Proportion of Open-end Funds in Quantity of Large Redemption

Quantity of large redemption is the main reason causing liquidity risk.Open-end funds supply redemption for investors,that means manager reserve cash meeting the needs of quantity of large redemption.In this paper,we set up a model on cash reserve proportion.The Gamma distribution should be used in redemption.We get cash reserve proportion in different probability, and then supplying a method of keeping away liquidity risk for manager of Open-end funds reasonably.