Which of the Following Is Not a Method of Forecasting

question 72

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.

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Definitions:

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Two offspring produced by the same pregnancy, categorized typically as either identical (monozygotic) or fraternal (dizygotic).

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The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

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A change in the DNA sequence that affects genetic information, potentially leading to genetic diversity and variations within species.