This figure presents the percentage deviat from the 60:40 ratio in the market values o equity of Royal Dutch and Shell between September 1980 and September 1995. 1) What is the main finding of this Figure? 2) What is the explanation for the finding?

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This figure presents the percentage deviation
from the 60:40 ratio in the market values of
equity of Royal Dutch and Shell between
September 1980 and September 1995.
1) What is the main finding of this Figure?
2) What is the explanation for the finding?
QUESTION I: THE TWIN-SECURITIES.
percent deviation
1-1
08/+/6
18/t/6
28/9/6
£8/9/6
9/5/84
9/5/85
купить
9/5/86
толичинити
28/2/6
88/9/6
68/9/6
06/9/6
16/9/6
9/7/92
9/7/93
574*
Fig. 2.1 Log Deviations From Royal
Dutch/Shell Parity.
hay
Source: Froot and Dabora (1998).
9/7/95
Transcribed Image Text:This figure presents the percentage deviation from the 60:40 ratio in the market values of equity of Royal Dutch and Shell between September 1980 and September 1995. 1) What is the main finding of this Figure? 2) What is the explanation for the finding? QUESTION I: THE TWIN-SECURITIES. percent deviation 1-1 08/+/6 18/t/6 28/9/6 £8/9/6 9/5/84 9/5/85 купить 9/5/86 толичинити 28/2/6 88/9/6 68/9/6 06/9/6 16/9/6 9/7/92 9/7/93 574* Fig. 2.1 Log Deviations From Royal Dutch/Shell Parity. hay Source: Froot and Dabora (1998). 9/7/95
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