Which of the Following Is Not a Method of Forecasting

question 4

Multiple Choice

Which of the following is not a method of forecasting exchange rate volatility?

• A) using the absolute forecast error as a percentage of the realized value
• B) using the volatility of historical exchange rate movements as a forecast for the future
• C) using a time series of volatility patterns in previous periods
• D) deriving the exchange rate's implied standard deviation from the currency option pricing model

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness visible in art, science, and problem-solving.

Overseers

Individuals appointed to supervise and direct the work of slaves, particularly on plantations in the Americas, often enforcing discipline with harsh measures.

Excessively Brutal

Describes actions or behavior that are extremely cruel or harsh beyond what is necessary or justified.

Trusted Slaves

Enslaved individuals who were given responsibilities or privileges due to perceived loyalty to their enslavers.