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What is the rationale for the existence of the ife what are


1. Limitations of PPP. Explain why PPP does not hold.

2. Implications of IFE. Explain the international Fisher effect (IFE). What is the rationale for the existence of the IFE? What are the implications of the IFE for firms with excess cash that consistently invest in foreign Treasury bills? Explain why the IFE may not hold.

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Financial Management: What is the rationale for the existence of the ife what are
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