One Implication of the Random Walk Hypothesis Is

question 63

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 above

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Definitions:

COUNTIF Function

An Excel function that counts the number of cells in a range that meet a single criterion; for example, counting the number of times a particular city appears in a list of cities.

Blank Cells

Empty spaces without data in a spreadsheet or table, often awaiting input or indicating the absence of applicable information.

SUMIF Function

A function in spreadsheet software that calculates the sum of a range of cells that meet a specified criterion.

Cells

Individual containers in spreadsheet software that hold data, capable of containing text, numbers, or formulas.