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:

Entrepreneurial Firm

A business entity that focuses on innovation, new market exploration, and venture creation.

Mature Industry

An industry that has experienced long-term growth and development, characterized by high levels of competition and little growth potential.

Weak Ties

Refers to the relationships or connections in a social network that are not closely bonded, often considered more casual or distant acquaintances, yet can provide new insights and opportunities.

Systems Thinking

An approach to problem-solving that views complex systems as wholes rather than breaking them down into parts.