Huge Corporation Has Just Initiated a Market-Based Forecast System Using

question 7

Multiple Choice

Huge Corporation has just initiated a market-based forecast system using the forward rate as an estimate of the future spot rate of the Japanese yen (¥) and the Australian dollar (A$) .Listed below are the forecasted and realized values for the last period:

According to this information and using the absolute forecast error as a percentage of the realized value,Huge Corp.has forecasted the _______________ more accurately by ____________%.

• A) yen;6.19%
• B) Australian dollar;6.19%
• C) yen;5.34%
• D) Australian dollar;5.34%
• E) none of the above

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Definitions:

Potential Scrutiny

The likelihood or possibility of being examined or investigated closely, often in a critical manner.

Ego-Syntonic

Pertaining to thoughts, impulses, and behaviors that are consistent with the self-image of an individual, often seen in conditions like Obsessive Compulsive Disorder.

Ego-Dystonic

Refers to thoughts, impulses, and behaviors that are felt to be repugnant, distressing, unacceptable, and inconsistent with one's self-concept.

Hoarding Disorder

A mental health disorder characterized by persistent difficulty discarding or parting with possessions, regardless of their actual value, leading to clutter that disrupts one's ability to use their living or work spaces.