Which of the Following Is True of the Efficient Market

question 81

Multiple Choice

Which of the following is true of the efficient market school of thought toward exchange rate forecasting?

• A)Forward rates are not unbiased predictors of future spot rates.
• B)Accurate predictions of future spot rates can be calculated from publicly available information.
• C)Prices do not reflect all available information about the market.
• D)Inaccuracies in predictions will not be consistently above or below future spot rates; they will be random.
• E)Forecasts might provide better predictions of future spot rates than forward exchange rates do.

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Definitions:

Working Relationships

Interactions and connections between colleagues within a professional environment, often based on respect, communication, and teamwork.

Open-door Policy

A management practice whereby employees are encouraged to communicate openly with their superiors or managers.

Upward Communication

Communication that flows from the lower levels of a hierarchy to the upper levels, often involving feedback or reports.

Formal Channels

Official, structured communication pathways within an organization, designed for the efficient flow of information and decision-making processes.