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a) Describe your understanding of the law of one price. Why do you think that this theory is not practical in the real world? Provide
a) Describe your understanding of the law of one price. Why do you think that this theory is not practical in the real world? Provide real life examples in your justifications. (3.5 marks)
b) Would it be possible for banks to maintain a high return on equity (ROE) during the recent pandemic of Covid-19? What are the best strategies for the banks to achieve a good level of ROE during crisis?
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