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Author Question: Kayla purchased 500 ADRs in Pearson PLC, a British Company. How will fluctuations in the ... (Read 24 times)

madimontg

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Kayla purchased 500 ADRs in Pearson PLC, a British Company.  How will fluctuations in the dollar/pound exchange rate affect the value of her investment?
◦ Because the ADRs are denominated in dollars, the exchange rate will have no effect on her investment.
◦ Changes in the exchange rate will be directly reflected in both the ADR value and dividends.
◦ If the pound weakens against the dollar, the dollar value of her ADRs will increase.
◦ If the dollar weakens against the pound, the value of her ADRs will decrease.


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Marked as best answer by madimontg on Mar 29, 2022

LynellDool

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    • i thought about discounts
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When you can make use of a promotion on an already discounted object, all of the greater. why not find out more



madimontg

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it


tuate

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Reply 3 on: Yesterday
Wow, this really help

 

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