Which of the Following Is True According to the Text

question 2

Multiple Choice

Which of the following is true according to the text?

• A) The forecast bias of a currency rarely shifts over time.
• B) The absolute forecast error as a percentage of the realized value is a good measure to use in detecting a forecast bias.
• C) Forecasting errors are smaller when focused on longer term periods.
• D) None of these are correct.

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