Explain the interest parity condition explain the posners, Financial Management

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Explain the interest parity condition explain the posners

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.

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Financial Management: Explain the interest parity condition explain the posners

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