1.) Measuring Forecast Accuracy You are hired as a consultant to assess a firmss ability to forecast. The firm has developed a point forecast for two different currencies presented in the following table. The firm asks you to determine which currency was or casted with greater accuracy.

Period	Yen Forecast	Actual Yen Value	Pound Forecast	Actual Pound Value
1	0.0050	0.0051	1.50	1.51
2	0.0048	0.0052	1.53	1.50
3	0.0053	0.0052	1.55	1.58
4	0.0055	0.0056	1.49	1.52

2.) Forecasting Exchange Rates of Currencies That Previously Were Fixed When some countries in Eastern Europe initially allowed their currencies to fluctuate against the dollar, would the fundamental technique based on historical relationships have been useful for forecasting future exchange rates of these currencies? Explain.