One Implication of the Random Walk Hypothesis Is

question 66

Multiple Choice

One implication of the random walk hypothesis is

• A)given the efficiency of foreign exchange markets,it is difficult to outperform the market-based forecasts unless the forecaster has access to private information that is not yet reflected in the current exchange rate.
• B)given the efficiency of foreign exchange markets,it is difficult to outperform the market-based forecasts unless the forecaster has access to private information that is already reflected in the current exchange rate.
• C)given the relative inefficiency of foreign exchange markets,it is difficult to outperform the technical forecasts unless the forecaster has access to private information that is not yet reflected in the current futures exchange rate.
• D)none of the options

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Definitions:

Analogue Experiment

An experimental design used to study a particular phenomenon by replicating it or simulating it in a controlled environment, especially when direct experimentation is not possible.

Disasters

Severe, often sudden events that cause great damage or loss of life, such as natural catastrophes or human-made crises.

Longitudinal

Longitudinal refers to research designs that involve repeated observations or measurements of the same subjects over a period of time.

Epidemiological

Relating to the study and analysis of the distribution, patterns, and determinants of health and disease conditions in defined populations.