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Some Forecasters Believe That Foreign Exchange Markets for the Major

question 53

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. Explain the rationale of this statement including the assumptions made, the meaning of "efficient" and "unbiased," and the empirical evidence.


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Adjusting an item's position so it aligns with both the top and left boundaries of its container or designated area.

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