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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Fundamentals Of Multinational Finance

ISBN: 9780321541642

3rd Edition

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

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