A Risk-Free Asset in the U

question 48

Multiple Choice

A risk-free asset in the U.S.is currently yielding 3% while a Canadian risk-free asset is yielding 2%.The current spot rate is C$.75 is equal to $1.What is the approximate two-year forward rate if interest rate parity holds?

• A)C$.7257
• B)C$.7328
• C)C$.7351
• D)C$.7389
• E)C$.7472

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Chi-square

A statistical test that measures the discrepancy between observed and expected frequencies in categorical data to assess significance.

McNemar Test

A statistical test used on paired nominal data to determine whether the row and column marginal frequencies are equal.

Staff Development Program

A structured process implemented by organizations to enhance the knowledge, skills, and abilities of their staff.