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    International Financial Management
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    Exam 7: International Arbitrage and Interest Rate Parity
  5. Question
    If Interest Rate Parity (IRP) Exists, Then the Rate of Return
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If Interest Rate Parity (IRP) Exists, Then the Rate of Return

Question 56

Question 56

True/False

If interest rate parity (IRP) exists, then the rate of return achieved from covered interest arbitrage should be equal to the rate available in the foreign country.

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