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    International Financial Management Study Set 6
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    Exam 6: International Parity Relationships and Forecasting Foreign Exchange Rates
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    Although IRP Tends to Hold, It May Not Hold Precisely
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Although IRP Tends to Hold, It May Not Hold Precisely

Question 48

Question 48

Multiple Choice

Although IRP tends to hold, it may not hold precisely all the time


A) due to transactions costs, like the bid ask spread.
B) due to asymmetric information.
C) due to capital controls imposed by governments.
D) both a and c

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