10. Forward Rate as an Unbiased Predictor of the Future Spot Rate. Some forecasters believe that for-...
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10. Forward Rate as an Unbiased Predictor of the Future Spot Rate. Some forecasters believe that for- eign exchange markets for the major floating cur- rencies 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 estimat- ing future spot exchange rates?
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Related Book For
Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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