The Total Rate of Return on an International Asset Is

question 25

Multiple Choice

The total rate of return on an international asset is the:

• A) spot rate plus the forward rate.
• B) rate of return on the asset plus or minus the expected capital gain or loss on currency changes.
• C) rate of return on the asset minus commissions.
• D) rate of return plus inflation minus taxes.

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Definitions:

Tying Contracts

Agreements where the sale of one product (the "tying" product) is conditioned on the purchase of another product (the "tied" product).

Clayton Act

An amendment passed to the U.S. antitrust laws to promote competition among enterprises and protect consumers from unfair business practices.

Clayton Act

A United States antitrust law, passed in 1914, aiming to prevent exclusive sales contracts, corporate mergers, and other practices that restrict competition.

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at preventing anti-competitive mergers by closing loopholes relating to asset purchases.