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True/False: Determine and briefly explain (in no more than four sentences) whether the following statements are true or false. Adding some international securities into a
- True/False: Determine and briefly explain (in no more than four sentences) whether the following statements are true or false.
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- Adding some international securities into a portfolio of Canadian stocks helps reduce unsystematic risk in a portfolio.
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- If a firm uses its WACC as the discount rate for all of the projects it undertakes, then the firm will tend to become riskier over time.
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- According to the relative purchasing power parity theory, high inflation in country A and low inflation in country B will cause the value of country A's currency to appreciate relative to that of country B.
- For forward contracts, the payoff profile for the seller of a forward contract is a upward sloping linear function.
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