Which of the Following Is Not a Method of Forecasting

question 4

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
• 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

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An extinct species of human that lived approximately 2 million to 100,000 years ago, known for its upright walking ability.

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