Does the interest rate parity hold in each of the following cases?
In case it does not hold, calculate the risk premium.
Definitions:
Alzheimer's Disease
A progressive neurological disorder characterized by memory loss, cognitive decline, and personality changes, leading to the inability to perform daily activities.
Dementia
A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, significantly affecting a person's daily functioning.
Schizophrenia
A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often involving delusions and hallucinations.
Long-Term Memory
A type of memory capable of storing information for an extended period, sometimes indefinitely, including facts, experiences, and skills.
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