Departures from Interest Parity

question 78

Multiple Choice

Departures from interest parity

• A) can be explained using theories of risk premium.
• B) cannot be explained using theories of risk premium.
• C) may or may not be able to be explained using theories of risk premium, more research is needed.
• D) are completely unrelated to risk premium.
• E) occur when risk premium is over calculated.

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Definitions:

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