Which of the Following Would a Follower of the Inefficient

question 101

Multiple Choice

Which of the following would a follower of the inefficient market school of thought agree with?

• 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:

Performance Review

A formal assessment where an employee's work performance is evaluated, often to inform decisions on promotions, pay raises, and development.

Dissimilar Fillers

are non-relevant stimuli used in memory and recognition tasks in experiments to prevent participants from using cues or patterns in the test material to aid their recall or recognition.

Mistaken Identifications

Incorrectly recognizing a person or item as being someone or something else, often leading to false assumptions or judgments.

Incorrect Rejections

The error in a decision-making process where a correct or valid option is dismissed or not accepted.