The main conclusion drawn from the theory of interest rate parity is t

The main conclusion drawn from the theory of interest rate parity is that

A) a single currency will increase economic welfare.
B) arbitrage opportunities may persist for long periods of time.
C) investors can seldom earn higher returns from foreign investments than from domestic ones.
D) exchange rates adjust slowly to their proper levels.
E) fixed exchange rates are superior to flexible ones.

ANSWER

C