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    International Financial Management Study Set 1
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    Exam 7: International Arbitrage and Interest Rate Parity
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    If Interest Rate Parity Exists, Then the Rate of Return
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If Interest Rate Parity Exists, Then the Rate of Return

Question 31

Question 31

True/False

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

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