Which of the Following Is Not a Method of Forecasting

question 30

Multiple Choice

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

• A) Using the absolute forecast error as a percentage of the realized value to improve your forecast.
• B) Using the volatility of historical exchange rate movements as a forecast for the future.
• C) Using a time series of volatility patterns in previous periods.
• D) Deriving the exchange rate's implied standard deviation from the currency option pricing model.

---

Definitions:

Internal Attribution

The explanation of an individual's behavior as being caused by internal characteristics such as personality, disposition, or attitudes.

External Attribution

A psychological concept where individuals attribute their successes or failures to external factors or forces beyond their control.

Employee Satisfaction

the level of contentment employees feel about their job, including aspects like work environment, duties, and compensation.

Stereotyping

The process of ascribing certain traits or behaviors to individuals based solely on their membership in a particular group, without considering individual differences.