When discussing exchange rate forecasting, the inefficient market school of thought would agree that Multiple Choice O investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates. О forward exchange rates are the best possible predictors of future spot exchange rates. О companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates. О the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates. О 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 O investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates. О forward exchange rates are the best possible predictors of future spot exchange rates. О companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates. О the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates. О 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
O
investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates.
О
forward exchange rates are the best possible predictors of future spot exchange rates.
О
companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates.
О
the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates.
О
forward exchange rates represent market participants' collective predictions of likely spot exchange rates.
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