The rate of return on ADRs is unaffected by changes in the exchange rates.

Name: The rate of return on ADRs is unaffected by changes in the exchange rates.
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Question

Quizplus · Accepted Answer

The rate of return on American Depositary Receipts (ADRs) is affected by changes in exchange rates because the underlying shares are priced in a foreign currency, and any fluctuation in the exchange rate between that currency and the USD will impact the USD value of the ADRs.

The Rate of Return on ADRs Is Unaffected by Changes