In terms of exchange rate forecasting,a(n)_____ market is one in which prices do not reflect all available information.

Question

Quizplus · Accepted Answer

An inefficient market is one where the prices of the assets do not reflect all available information, which can create opportunities for investors to generate profits by exploiting the gaps in the market. In the context of exchange rate forecasting, an inefficient market implies that exchange rates may not necessarily reflect all the relevant information that could impact their value, thereby allowing investors to create trading strategies that can potentially generate abnormal returns.

In Terms of Exchange Rate Forecasting,a(n)_____ Market Is One in Which