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Estimate future spot exchange rates

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Question: Forward Rate as an Unbiased Predictor of the Future Spot Rate. Some forecasters believe that foreign exchange markets for the major floating currencies are "efficient" and forward exchange rates are unbiased predictors of future spot exchange rates. What is meant by "unbiased predictor" in terms of how the forward rate performs in estimating future spot exchange rates?

Reference no: EM131676621

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