When discussing exchange rate forecasting, the inefficient market school of thought would agree that Multiple Choice investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates. forward exchange rates are the best possible predictors of future spot exchange rates. companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates. the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates. forward exchange rates represent market participants' collective predictions of likely spot exchange rates.
When discussing exchange rate forecasting, the inefficient market school of thought would agree that Multiple Choice investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates. forward exchange rates are the best possible predictors of future spot exchange rates. companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates. the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates. forward exchange rates represent market participants' collective predictions of likely spot exchange rates.
Chapter9: Forecasting Exchange Rates
Section: Chapter Questions
Problem 11QA
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Transcribed Image Text:When discussing exchange rate forecasting, the inefficient market school of thought would agree that
Multiple Choice
investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates.
forward exchange rates are the best possible predictors of future spot exchange rates.
companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates.
the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates.
forward exchange rates represent market participants' collective predictions of likely spot exchange rates.
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