How is a political risk probability related to a country spread?
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Political Risk
Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign...
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First recall that the country spread is an indication of the default risk of a bond However although a government might default on its bonds as a resu...View the full answer
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Related Book For 
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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