You have equal amounts of money invested in a risk-free dollar-denominated investment and borrowed at the rate paid on the British pound. If you can earn a return during this, you have shown:

A) Interest rate arbitrage.
B) Interest rate parity
C) Purchasing power arbitrage
D) Purchasing power parity


A

Business

You might also like to view...

Compute the May 20xx EVA for an investment center with the following information: Pre-tax operating income for May 20xx $18,000,500 Income tax expense for May 20xx 5,100,000 Assets at May 31, 20xx 13,200,500 Current liabilities at May 31, 20xx 10,000,000 Long-term liabilities at May 31, 20xx 3,500,000 Minimum desired rate of return 20% Minimum desired rate of return 20%

a. $12,260,400 b. $12,700,500 c. $11,880,500 d. $12,200,500

Business

When estimating the cost of a contract proposal, which of the following is not likely to be an important consideration?

A. Future staffing levels B. Employee seniority C. Opinions of union members D. Labor market trends

Business

Inflation can distort ________

A) book value of inventory costs B) market value of revenue C) market value of sales D) book value of revenue

Business

The concept of workforce diversity expanded from compliance to an issue of business survival during the early 1980s.

Answer the following statement true (T) or false (F)

Business