When the Forward Rate Equals the Expected Future Spot Rate,the

question 29

Multiple Choice

When the forward rate equals the expected future spot rate,the forward rate is said to be a(n) ________ of the future spot rate.

• A) unbiased predictor
• B) forward market investment
• C) forward market return
• D) unsystematic risk

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Definitions:

Appendix

A small, tube-like organ attached to the large intestine but has no known essential function in humans, famous for its potential to become inflamed (appendicitis).

Lactose Intolerance

A condition where individuals cannot digest lactose properly, leading to gastrointestinal symptoms upon consuming dairy products.

Lactase Activity

The function of the enzyme lactase, which is responsible for breaking down lactose, a sugar found in milk and dairy products, into simpler sugars that can be absorbed by the body.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.