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:

Subconscious Awareness

The part of the mind that is not currently in focal awareness yet influences thoughts and behaviors.

Lower-Level Consciousness

A state of consciousness with reduced awareness and attention, such as during sleep or a daydream.

Higher-Level Consciousness

Refers to an advanced state of awareness, where one is fully engaged and mindful of their thoughts, feelings, and surroundings.

Memory Performance

The efficiency and effectiveness of a person's ability to store, retain, and recall information over time.