If exchange markets were not efficient, it would pay for a firm to spend resources on forecasting exchange rates.

Name: If exchange markets were not efficient, it would pay for a firm to spend resources on forecasting exchange rates.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

If exchange markets were not efficient, then there would be opportunities for firms to earn abnormal profits by accurately forecasting exchange rates. Therefore, it would be rational for a firm to allocate resources towards forecasting if the market were not efficient.

If Exchange Markets Were Not Efficient, It Would Pay for a Firm