What Concept States That There Is No Systematic Difference Between

question 6

Multiple Choice

What concept states that there is no systematic difference between the forward rate and the expected future spot rate,and that the expected forward market return is zero?

• A) unbiased predictor
• B) unbiasedness hypothesis
• C) uncovered interest rate parity
• D) unsystematic risk

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Definitions:

Neutral Stimulus

An object or event that initially produces no specific response other than focusing attention, until it is associated with a significant event.

Impending Occurrence

An event that is about to happen or is likely to happen shortly.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without needing to be learned.

Biologically Adaptive

Traits or behaviors that increase the survival or reproductive success of organisms within their environmental context.