Regression Results Reveal Coefficients of A₀ = 0 and A₁

question 57

Multiple Choice

Regression results reveal coefficients of a₀ = 0 and a₁ = 1.3. Thus, Gamma has reason to believe that its past forecasts have ____ the realized spot rate.

• A)overestimated
• B)underestimated
• C)correctly estimated
• D)none of the above

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