Use the Information for the Question(s) Below

question 66

Multiple Choice

Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM) , three shares of Merck (MRK) , and three shares of Citigroup Inc. (C) . Suppose the current market price of each individual stock are shown below:

-An American Depository Receipt (ADR) is a security issued by a U.S.bank and traded on a U.S.stock exchange that represents a specific number of shares of a foreign stock.Siemens AG has an ADR that trades on the NYSE and is equivalent to one share of Seimens AG trading on the Frankfurt Stock Exchange in Germany.If Seimans trades for $95.19 on the NYSE and for €64.10 on the Frankfurt Stock Exchange,then under the law of one price,the current exchange rate is closest to:

• A) $0.6744/€
• B) €0.6744/$
• C) €1.4850/$
• D) $1.5274/€

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Definitions:

Multifactorial Transmission

The process by which traits or diseases are passed from generation to generation through a combination of genetic and environmental factors.

Natural Selection

A fundamental mechanism of evolution, where organisms better adapted to their environment tend to survive and reproduce, passing on advantageous traits.

Joint Evolution

The process by which two or more species evolve in response to each other, influencing each other’s evolutionary pathway.

Binary Influence

A concept that deals with dualistic effects or the impact of two different forces or factors in a given situation.