142 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF AEGON N.V.  NOTE 4 The table that follows sets forth the closing levels of certain  major indices at the end of the last five years. The sensitivity analysis of net income and shareholders’ equity  to changes in equity prices is presented in the table below. The  sensitivity of shareholders’ equity and net income to changes in  equity markets reflects changes in the market value of AEGON’s  portfolio, changes in DPAC amortization, contributions to  pension plans for AEGON’s employees and the strengthening of  the guaranteed minimum benefits, when applicable. The results  of equity sensitivity tests are non-linear. The main reason for  this is due to equity options sold to clients that are embedded  in some of these products and that more severe scenarios could  cause accelerated DPAC amortization and guaranteed minimum  benefits provisioning, while moderate scenarios may not.  Changes in sensitivities between 2009 and 2010 arise mainly  as a result of additional equity hedges during 2010 which  reduces the impact of market movements. Also, the guarantees  contracts that expose AEGON to equity risk are less in the  money decreasing the sensitivity on DPAC amortization.  The equity sensitivities related to the guarantees are non linear  because of the impact of guarantees and DPAC amortization. Liquidity risk is inherent in much of AEGON’s business.  Each asset purchased and liability sold has its own liquidity  characteristics. Some liabilities are surrenderable while some  assets, such as privately placed loans, mortgage loans, real  estate and limited partnership interests, have low liquidity.  If AEGON requires significant amounts of cash on short notice  in excess of normal cash requirements and existing credit  facilities, it may have difficulty selling these investments at  attractive prices or in a timely manner.  AEGON operates a Liquidity Risk Policy under which country  units are obliged to maintain sufficient levels of highly liquid  assets to meet cash demands by policyholders and account  holders over the next two years. Potential cash demands are  assessed under a stress scenario including spikes in  disintermediation risk due to rising interest rates and concerns  over AEGON’s financial strength due to multiple downgrades  of the Group’s credit rating. At the same time, the liquidity  of assets other than cash and government issues is assumed  to be severely impaired for an extended period of time. All units  and AEGON Group must maintain enough liquidity in order to  meet all cash needs under this extreme scenario. AEGON holds EUR 29,922 million of general account  investments in cash, money market products and sovereign  LIQUIDITY RISK Year-end 2010 2009 2008 2007 2006 S&P 500 1,258 1,115 903 1,468 1,418 Nasdaq 2,653 2,269 1,577 2,652 2,415 FTSE 100 5,900 5,413 4,434 6,457 6,221 AEX 355 335 247 516 495 Sensitivity analysis of net income and shareholders’  equity to equity markets Immediate change of Estimated  approximate effects on net income Estimated  approximate effects on  shareholders’ equity 2010 Equity increase 10% 55 127 Equity decrease 10% (100) (156) Equity increase 20% 90 232 Equity decrease 20% (214) (331) 2009 Equity increase 10% 93 150 Equity decrease 10% (92) (147) Equity increase 20% 175 287 Equity decrease 20% (201) (304)