Which of the Following Is Not a Method of Forecasting

question 35

Multiple Choice

Which of the following is not a method of forecasting exchange rate volatility?

• A) using the volatility of historical exchange rate movements
• B) using a time series of volatility patterns in previous periods
• C) using the volatility of future exchange rate movements
• D) using the exchange rate's implied standard deviation

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Definitions:

Dependent Variable

A variable in an experiment that is expected to change as a result of manipulations made to the independent variable.

Manipulation Check

A test used to determine whether the manipulation of the independent variable has had the intended effect on the subjects.

Significant Results

Statistical outcomes that demonstrate a meaningful difference or relationship, indicating that findings are unlikely due to chance.

One-Tailed Tests

Statistical tests that determine if there is a significant difference in a specific direction between two groups.