Define why it is difficult to forecast future exchange rates, Financial Management

Assignment Help:

Researchers found that it is extremely difficult to forecast the future exchange rates more precisely than the forward exchange rate or the current spot exchange rate. How would you interpret this finding?

Answer: This involves that exchange markets are informationally well-organized. So, unless one has private information which is not yet reflected in the current market rates, it would be hard to beat the market.

Related Discussions:- Define why it is difficult to forecast future exchange rates

Explain briefly the term e-billing, QUESTION (a) Describe briefly three...

QUESTION (a) Describe briefly three methods of electronic payment. (b) (i) Explain briefly the term E-Billing. (ii) Outline three advantages of E-Billing. (c) Why is c

Explain the dividends and interest payments, Dividends and interest payment...

Dividends and interest payments Payment of dividends and interest can either be demonstrated under financing activities or under operating activities. Sum of the 3

Accounting period - accounting principle, Accounting Period - Accounting Pr...

Accounting Period - Accounting Principle Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the r

What is the value of the security to an investor, What is the Value of the ...

What is the Value of the security to an investor Value of the security to an investor is directly proportional to the return that he is expected to get from that security. Hig

Factors considered in assigning a credit rating, Credit rating agenci...

Credit rating agencies carry out credit rating. Companies appoint these agencies to assign credit rating for their corporate issues. The rating agencies may condu

Determine the pest analysis and its derivatives, PEST analysis and its deri...

PEST analysis and its derivatives Such a process is required for an organisation to be continually aware of external factors within its general or industry en

Illustrate the comparison between equity and debt, Illustrate the compariso...

Illustrate the comparison between equity and debt Equity and Debt: A Comparison 1. Equity shares don't carry any fixed charges on them. If company doesn't generate positiv

Account balance - inherent risk, Account balance - Inherent risk At a...

Account balance - Inherent risk At account balance / class of transaction level Balances susceptible to misstatement. History of errors. Complexity of transac

Explain capital investment project appraisal, Question: (a) The future ...

Question: (a) The future value (F) of a sum invested now can be calculated using the formula: F = P(1 + r) n Required: (i) Describe each of the other constituents in the

Relate lost sales to the definition of incremental cash flow, Relate the co...

Relate the concept of lost sales to the definition of incremental cash flow. While a new capital project is take on it may compete with an existing project or projects, causing t

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages