According to the efficient market view,the most accurate predictor of exchange rates is ________.

Question

Quizplus · Accepted Answer

According to the efficient market view, all available information is already reflected in the current exchange rate, making it the most accurate predictor of future exchange rates. Forward exchange rates, which are based on market expectations of future exchange rates, are also considered relatively accurate under this view. On the other hand, fundamental analysis, technical analysis, and statistical modeling are considered less accurate because they rely on information or assumptions that may not be fully reflected in the current exchange rate.

According to the Efficient Market View,the Most Accurate Predictor of Exchange