Which of the Following Positions Is Adopted by the Inefficient

question 9

Multiple Choice

Which of the following positions is adopted by the inefficient market school of thought?

• A)Forward exchange rates do the best possible job of forecasting future spot exchange rates.
• B)Forward exchange rates are unbiased predictors of future spot rates.
• C)Companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates.
• D)Companies can improve the foreign exchange market's estimate of future exchange rates by investing in forecasting services.

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