The Three Main Approaches to Exchange Rate Forecasting Are

question 129

Multiple Choice

The three main approaches to exchange rate forecasting are

• A) the efficient market approach, the fundamental approach, and the technical approach.
• B) the efficient market approach, the random walk hypothesis, and the pragmatic approach.
• C) the random walk hypothesis, the pragmatic approach, and the fundamental approach.
• D) guesswork, estimation, and approximation.

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Definitions:

Closely Held Corporation

A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Dividend Stream

Dividend Stream is the sequence of cash payments made to shareholders of a corporation over time, typically derived from the company's earnings.

Required Return

The least amount of return expected by an investor from putting money into a certain asset, while taking its risk profile into account.