Difference between revisions of "Interest rate parity"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Interest rate parity]]. Holds that investors should expect to earn the same return in all countries after adjusting for risk. | :[[Interest rate parity]]. Holds that investors should expect to earn the same return in all countries after adjusting for risk. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Interest rate parity]]. Specifies that investors should expect to earn the same return in all countries after adjusting for risk. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 01:40, 2 November 2019
Interest rate parity is a phenomenon that holds that investors should expect to earn the same return in all countries after adjusting for risk.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Interest rate parity. Holds that investors should expect to earn the same return in all countries after adjusting for risk.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Interest rate parity. Specifies that investors should expect to earn the same return in all countries after adjusting for risk.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
