The security market line is not stable over time and shifts over time in response to changing inflationary expectations

The sample variance is a biased estimator of the population variance because we would expect the average of many sample variances taken from a population would be equal to the true population variance

Indicate whether the statement is true or false

Which of the following statements is true?

A) Interest rate parity indicates that the forward premium or discount should be greater than the differences in the national interest rates for securities of the same maturity. B) Purchasing power parity indicates that, in the long run, exchange rates adjust to reflect international differences in inflation so that the purchasing power of each currency tends to remain the same. C) The International Fisher Effect indicates that the nominal interest rate should be the same all over the world at all times if the market is efficient. D) Both B and C.