ADRs Have the Following Disadvantages Except

question 55

Multiple Choice

ADRs have the following disadvantages except:

• A) foreign currency exchange risk
• B) financial statements in foreign language
• C) information lag
• D) less frequent reporting of financial results

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Definitions:

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed as an annual rate.

Investment Project

A project involving the allocation of funds or resources towards a venture with the expectation of generating income or profit in the future.

Investment Project

A planned set of capital expenditures and activities aimed at generating future benefits or returns.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.