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Question
Which of the following is true of the efficient market school of thought toward exchange rate forecasting?A.Forward rates are not unbiased predictors of future spot rates.
B.Accurate predictions of future spot rates can be calculated from publicly available information.
C.Prices do not reflect all available information about the market.
D.Inaccuracies in predictions will not be consistently above or below future spot rates; they will be random.
E.Forecasts might provide better predictions of future spot rates than forward exchange rates do.
Answer
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