What does the term liquidity mean? Which would be more important to a firm that held a

Question:

What does the term liquidity mean? Which would be more important to a firm that held a portfolio of marketable securities as a precautionary balance against the possibility of losing a major lawsuit—liquidity or rate of return? Explain.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...