Which of the following is an important component for calculating liquidity duration?

Liquidity duration refers to the time it takes for an investment or portfolio to convert into cash without significantly affecting its market price. In this context, total daily volume is a crucial component because it measures the liquidity of the asset or security in question. Higher daily trading volumes typically indicate that an asset can be sold more easily without impacting its price adversely. This means that when assessing liquidity duration, one must consider how quickly and efficiently the asset can be sold in the market, which is directly reflected in the total daily volume.

The other components mentioned, while relevant in other contexts, do not specifically address the liquidity aspect in the same direct manner. Net asset value pertains to the overall value of an asset or fund and does not provide insight into how quickly that asset can be converted to cash. Annualized yield is more relevant to the return side of the investment rather than its liquidity. Brokerage fees deal with the cost of executing trades but do not influence the duration an asset can be held before encountering liquidity constraints. Thus, total daily volume is the primary indicator of liquidity shortfall and is essential for calculating liquidity duration effectively.