4. Examine forecasts from www.tradingeconomics.com for the British pound, Japanese yen, Russian ruble, and euro.

(a) Which of these currencies are forecast to appreciate and which to depreciate?

(b) Compare these forecasts to the forward rates for the same maturity. Are the predicted exchange rates greater or less than the corresponding forward rates?

(c) Compare these forecasts to the actual exchange rates. How accurate were these forecasts?

(d) If you had followed these forecasts (by buying forward when the forecasted exchange rate exceeded the forward rate and selling forward when it was below the forward rate), would you have made or lost money?