What is meant by unbiased predictor

Reference no: EM131969508

Question: Some economists believe that foreign exchange markets for the major currencies whose price is determined by market forces 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? What are the rationale for this relationship based on?

Reference no: EM131969508

Questions Cloud

Concerned about your retirement : You are 21 years old and are concerned about your retirement.

Implementation of diverse implementation of diverse cultures : Be sure to address the implementation of diverse implementation of diverse cultures in the workplace and how this will impact organizational perceptions.

How effective was the new scorecard program : How effective was the new scorecard program in stimulating strategic discussions at the July 2003 board meeting? Do you agree with Dave Dahlmann's comment.

What is the present value of the cash flows : If 18 percent is the discount rate, what is the present value of the cash flows?

What is meant by unbiased predictor : Some economists believe that foreign exchange markets for the major currencies whose price is determined by market forces are "efficient" and forward exchange.

The rate of return on your client optimized portfolio : What is the expected value and standard deviation of the rate of return on your client’s optimized portfolio?

Sales required to cover all costs including cost of capital : Determine the minimum level of sales required to cover all costs including the cost of capital.

Prepare a schedule that would provide to first national bank : Using the future value and present value tables, prepare a schedule that Mr. and Mrs Raga would provide to the First National Bank, in order t borrow the money.

Explain the rules of assembly language : Explain the Rules of Assembly Language. What is an assembler? Explain both the first pass and second pass assembler with its diagram

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages