Empirical tests of forward parity over short forecasting periods suggest that forward exchange rates are poor predictors of future spot exchange rates.
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Q51: Suppose that S0$/SFr = $1.27/SFr and F1$/SFr
Q52: The relation between expected future changes in
Q53: Empirical studies indicate that forward parity holds
Q54: If annual interest rates are 10% in
Q55: S$/ArPeso = $0.35/ArPeso and SArPeso/Rand = ArPeso0.31/Rand.
Q57: The relation between the forward/spot ratio and
Q58: If the expected inflation rate is 5%
Q59: If expected inflation is 10% and the
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