Under the condition of internationally integrated capital markets,the value of an investment ________ we use in the analysis because of ________.

Question

Quizplus · Accepted Answer

The value of an investment does not depend on the currency used in the analysis under the condition of internationally integrated capital markets because of the Law of One Price, which states that identical goods should have the same price in different countries when prices are expressed in a common currency. This principle ensures that the value of an investment is consistent across different currencies, assuming efficient markets.

Under the Condition of Internationally Integrated Capital Markets,the Value of an Investment