Which of the Following Statements About the Law of One

question 13

Multiple Choice

Which of the following statements about the law of one price is true?

• A)It is most useful in assessing the true value of identical assets that are trading in more than one country.
• B)It is a useful tool in determining the absolute value of an asset.
• C)Empirical evidence suggests that it will provide the true value of an asset, except in those rare cases in which no comparable asset exists.
• D)Although it rarely will provide an exact value for an asset, it will often provide a close approximation.

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Definitions:

Peter Principle

A principle suggesting that individuals in a hierarchy tend to be promoted until they reach a level of respective incompetence.

Opposite-Sex Twins

Twins of a multiple birth consisting of one male and one female sibling.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm cells, making them genetically unique, unlike identical twins.

IQ Scores

Numerical measurements that represent an individual's cognitive abilities compared to the average population, typically through standardized testing.