If the forward rate is used as a forecaster of the spot rate:
A) the forecasting error equals the difference between the current spot rate and the forward rate at the maturity of the forward contract
B) the forecasting error equals the difference between the current forward rate and the spot rate at the maturity of the forward contract
C) the forecasting error equals the difference between the current forward rate and the current spot rate
D) none of the given answers
Correct Answer:
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Q17: Which of the following describes an econometric
Q18: The major problem with time-series forecasting is
Q19: The effectiveness of the spot rate as
Q20: The effectiveness of the forward rate as
Q21: Market efficiency will hold if:
A) the forward
Q23: The difference between judgmental forecasting and econometric
Q24: Which of the following is NOT a
Q25: Composite forecasting is used because:
A) different forecasters
Q26: Which of the measures below is NOT
Q27: Which of the following statement is NOT
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