Explain the interest parity condition

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1. In your own words, please explain the Interest Parity Condition.

2. In your own words, please explain the Posner's Technological Gap Theory.

3. Is monetary policy effective in the long-run? Why?

4. A stock has an average rate of return of 12.9% and a standard deviation of 15.3. What is the probability you will lose 1/3 of your investment in any one year? Assume the returns are normally distributed.

Reference no: EM131825858

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