The _____ argues that forward exchange rates do the best possible job of forecasting future spot rates and therefore investing in forecasting services would be a waste of money.

Question

Quizplus · Accepted Answer

The efficient market school argues that forward exchange rates are the best possible predictors of future spot rates, as all available information is already reflected in current prices. Therefore, investing in forecasting services would not provide any additional advantage, according to this theory.

The _____ Argues That Forward Exchange Rates Do the Best