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True/False: Determine and briefly explain (in no more than four sentences) whether the following statements...

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Finance

  1. True/False: Determine and briefly explain (in no more than four sentences) whether the following statements are true or false.
    1. Adding some international securities into a portfolio of Canadian stocks helps reduce unsystematic risk in a portfolio.
    1. If a firm uses its WACC as the discount rate for all of the projects it undertakes, then the firm will tend to become riskier over time.
    1. According to the relative purchasing power parity theory, high inflation in country A and low inflation in country B will cause the value of country A's currency to appreciate relative to that of country B.
    2. For forward contracts, the payoff profile for the seller of a forward contract is a upward sloping linear function.

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