3. Some basic relationships (S28.2) Define each of the following theories in a sentence or simple equation:

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3. Some basic relationships (S28.2) Define each of the following theories in a sentence or simple equation:

a. Interest rate parity.

b. Expectations theory of forward rates.

c. Purchasing power parity.

d. International capital market equilibrium (relationship of real and nominal interest rates in different countries).

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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