Agree or disagree with the following statement, explain your reasoning: An important property of the Law...

Agree or disagree with the following statement, explain your reasoning: An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.

Expert Solution

The given statement is CORRECT as the law of One price will be advocating that the prices of similar goods and similar commodities which have a similar stream of cash flows and similar advantages associated with them should be similar in different regions of the world and there should be no arbitraging possible but in the real world, there are arbitraging possible because of their various factors like exchange rate and macroeconomic factors which cannot be proactively discounted into the prices of the products and it will be holding in those markets where arbitrage is not possible because those market there will be no conditions related to discrepancy between various price of similar commodity.

Hence, law of One price will be holding in the market where arbitraging is not possible because arbitraging is not possible, then it is almost certain that the prices of various products will be in accordance with the exchange rate and other factors so law of One price will hold.

jeff jeffy answered 1 year ago

6. (4pts) Indicate if you “AGREE” or DISAGREE” with the following statements. Explain your reasoning. A)...

6. (4pts) Indicate if you “AGREE” or DISAGREE” with the following statements. Explain your reasoning. A) (1pt) ATP hydrolysis is necessary for actin treadmilling. (4 sentence max) B) (1pt) Late endosomes are converted to mature lysosomes by an increase in their internal pH. (4 sentence max) C) (1pt) Lysosomal membranes contain a proton pump that utilizes the energy of ATP hydrolysis to pump protons out of the lysosome, thereby maintaining the lumen at a low pH. (4 sentence max) D)...

Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Related...

Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Related party transactions require proper identification and consideration when considering risk. However, there is no requirement to disclose related party transactions unless they have an impact on material misstatements. b) When assessing fraud risk, auditors should adopt an attitude of professional scepticism to ensure that any indicator of a potential fraud is properly investigated. c) The responsibility for preventing and detecting fraud rests with those...

Indicate whether you agree or disagree with the following statements and explain your reasoning. (each 2.5...

Indicate whether you agree or disagree with the following statements and explain your reasoning. (each 2.5 marks, total: 10 marks) a) An auditor is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. (2.5 marks) b) An assurance engagement involves evaluation or measurement of...

Auditing 2 Indicate whether you agree or disagree with the following statements and explain your reasoning....

Auditing 2 Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Svetlana Petrova was reviewing the risk profile of Gaz Prom Industries in order to determine detection risk. She concluded: “Both my inherent and control risks are low. I guess I should be willing to accept high detection risk.” b) Boris Ivanov had performed an assessment of the accounts payable system at Magnitogirsk Iron and Steel Works Operations in the Urals. His focus was...

D. Please state whether you agree or disagree with the following, and provide your reasoning: Treating...

D. Please state whether you agree or disagree with the following, and provide your reasoning: Treating cells with cholera toxin (which activates Gs proteins) or with pertussis toxin (which inhibits Gi proteins) leads to similar relative changes in cAMP levels in the cell. Circle: AGREE or DISAGREE Reasoning:

Agree or disagree with the following statements. Support your answer with chemical reasoning, calculations, analogies, examples,...

Agree or disagree with the following statements. Support your answer with chemical reasoning, calculations, analogies, examples, etc. a. Since sugar is soluble in water, the lattice energy must be greater than the hydrogen bonds holding water together. b. The addition of salt to water raises the boiling point, lowers the freezing point, lowers the vapor pressure, and makes the water boil faster. c. The three factors that determine how fast a chemical reaction occurs are concentration, half-life, and enthalpy

Using a diagram, outline the ‘Malthusian Trap’ theory. Explain your reasoning why you agree or disagree...

Using a diagram, outline the ‘Malthusian Trap’ theory. Explain your reasoning why you agree or disagree with Malthus’s theory.

Explain whether you agree or disagree with the following comments: “The Statement of Cash Flows is...

Explain whether you agree or disagree with the following comments: “The Statement of Cash Flows is overrated. What is it really telling me that I can’t just find by looking at this year’s Balance Sheet and seeing how the account balances changed from last year?”

Explain whether you agree or disagree with the following statement: The education of children is obviously...

Explain whether you agree or disagree with the following statement: The education of children is obviously a public good. Educated people are more productive workers and usually have a higher degree of life-satisfaction and welfare. They are more likely to be politically engaged and have a higher sense of civic awareness. Finally, they are more likely to raise children with all these qualities. Therefore, providing education is a public good that should be supplied by the government. ?

18) Explain whether you agree or disagree with the following statement. “The concept of diminishing returns...

18) Explain whether you agree or disagree with the following statement. “The concept of diminishing returns refers to a firm's long-run average cost increasing as output increases.” 19) What three main assumptions need to be satisfied if a market is to be described as perfectly competitive? Explain why each of these assumptions is important. 20) What is moral hazard? Explain using an example.

Question