This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements regarding the Law of One Price is INCORRECT? (Read 57 times)

cool

  • Hero Member
  • *****
  • Posts: 570
on: Jul 9, 2019
Which of the following statements regarding the Law of One Price is INCORRECT?
◦ If equivalent goods or securities trade simultaneously in different competitive markets, then they will trade for the same price in both markets.
◦ An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.
◦ One useful consequence of the Law of One Price is that when evaluating costs and benefits to compute a net present value (NPV), we can use any competitive price to determine a cash value, without checking the price in all possible markets.
◦ At any point in time, the price of two equivalent goods trading in different competitive markets will be the same.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cool on Jul 9, 2019

aadams68

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


cool

  • Member
  • Posts: 570
Reply 2 on: Jul 9, 2019
Thanks for the timely response, appreciate it

pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Alan Price - Poor People Alan Price - Poor People
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ... Stacking the joints. A. Correct thumb–wrist alignment for applying direct pressure. B. Incorrect ...
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Virtual Enzyme Kinetics & Lineweaver Burk Plot

For a complete list of videos, visit our video library