The existence of a risk premium implies that the forward rate is equal to the expected future spot rate.
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Q16: The possibility that exchange rate changes can
Q17: The forward rate may serve as a
Q18: International capital flows may be due to
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Q19: Taking a short position in the foreign
Q20: Direct investment may become an increasingly important
Q22: Since profits are earned from foreign exchange
Q23: If I know what the spot rate
Q24: What is "home bias" in international investments?
Q25: Carry trade represents an arbitrage investment strategy
Q26: Comment on the following: "Portfolio diversification can
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