With Which of the Following Would a Follower of the Inefficient

question 56

Multiple Choice

With which of the following would a follower of the inefficient market school of thought agree

• A) Companies would be better off investing in foreign exchange forecasting services.
• B) Forward exchange rates do the best possible job of forecasting future spot exchange rates.
• C) Companies can optimize their foreign exchange transactions by using forward markets.
• D) Forward rates reflect all available information about likely future changes in exchange rates.

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Definitions:

Exposure

Refers to the state of being subjected to contact with something (e.g., a new environment, a language, or a type of learning material), often leading to increased familiarity or acquiring new skills.

Object of the Phobia

The specific subject or situation that triggers an irrational and excessive fear in an individual suffering from a phobia.

Shaping Procedure

A method of training by which successive approximations toward a target behavior are reinforced.

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to relieve severe mental disorders.