A Random Walk Model Can More Accurately Predict Exchange Rates

question 26

Multiple Choice

A random walk model can more accurately predict exchange rates as compared to a sophisticated forecast

• A) always.
• B) for forecasts up to a year away.
• C) for forecasts longer than a year away.
• D) never.
• E) because of the predictability of exchange rates.

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Definitions:

Char

Partially burnt organic material or the process of partial combustion that leaves a substance with increased carbon content.

Gas Chromatography Injector

A component of a gas chromatography system that introduces the sample into the flow path of the carrier gas.

Vaporized

Turned into vapor, typically through the application of heat, changing from a liquid or solid state into a gaseous state.

Gas Chromatograph

A gas chromatograph is an analytical instrument used to separate, analyze, and identify compounds in a gaseous sample based on their different boiling points.