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d2rockstar

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tT
发表于 2011-7-13 16:30 | 显示全部帖子

FCRP - Foreign Currency Risk Premium

understand, difference, currency, domestic, Foreign
(E(So) - So)/So - (Rd - Rf)

why is the difference in interst rates deducted? I understand that this is risk of the domestic currency appreciating...
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