Which of the Following Is Not a Method of Forecasting

question 35

Multiple Choice

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

• A) using the volatility of historical exchange rate movements
• B) using a time series of volatility patterns in previous periods
• C) using the volatility of future exchange rate movements
• D) using the exchange rate's implied standard deviation

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Definitions:

Hot Springs

Natural springs that discharge water heated by geothermal processes from the Earth's interior.

Planet's Formation

The process by which a planet forms from the gas and dust surrounding a young star, typically through the accretion of material.

Comets

Celestial objects composed of ice and dust that, when passing close to the sun, develop a visible coma (or atmosphere) and sometimes a tail.

Earth Processes

The dynamic and interrelated actions of physical and chemical phenomena that occur within the Earth's interior and on its surface, shaping the planet's geology.