Absolute form of purchasing power parity

Definition:

A theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price."

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Realized volatility

Sometimes referred to as the historical volatility, this term usually used in the context of derivatives. While the implied volatility refers to the market's assessment of future volatility, the... Read More

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