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    Financial Institutions Management Study Set 2
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    Exam 13: Foreign Exchange Risk
  5. Question
    The Interest Rate Parity Theorem Implies That by Hedging in the Forward
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The Interest Rate Parity Theorem Implies That by Hedging in the Forward

Question 75

Question 75

True/False

The interest rate parity theorem implies that by hedging in the forward exchange rate market, an investor realises the same returns whether investing domestically or in a foreign country.

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