Question: Discuss the Interest parity condition? (6 points) Do you make any modification on the interest parity condition, if the countries' assets differentiate in terms

Discuss the Interest parity condition? (6 points) Do you make any modification on the interest parity condition, if the count



 

Discuss the Interest parity condition? (6 points) Do you make any modification on the interest parity condition, if the countries' assets differentiate in terms of riskiness? Discuss briefly (4 points)? (Hint: You can approach this question by considering the interest parity condition with the varlation in investors' risk preferences Le risk-neutral, rink- averse) I

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