Some Forecasters Believe That Foreign Exchange Markets for the Major

question 42

Essay

Some forecasters believe that foreign exchange markets for the major floating currencies are "efficient" and forward exchange rates are unbiased predictors of future spot exchange rates. What are the three conditions of market efficiency as defined by the authors? What is implied by the term unbiased predictors? What does the empirical evidence have to say about the forward rate as an unbiased predictor of future spot rates?

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Definitions:

Bones Functions

Essential roles including support, protection, movement, mineral storage, and blood cell formation.

Skeletal System

The framework of bones and cartilages that supports the body, protects internal organs, and facilitates movement.

Osteons

Structural units of compact bone, consisting of concentric layers of calcified matrix and central blood vessels.

Compact Bone

The dense, hard outer layer of bone that gives it strength and houses the osteons and Haversian system for nutrient and waste exchange.