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28. What is a good forecast on future exchange rate A. A good forecasting exchange rate should be a rate that is much higher than

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28. What is a good forecast on future exchange rate A. A good forecasting exchange rate should be a rate that is much higher than the real future exchange rate so that traders can make profits. B. A good forecasting exchange rate should be a rate that is close to the real future exchangs C. A good forecasting exchange rate should be a rate that is lower than the real future excha rate so that traders keep conservative view on the future. D. A good I forecasting exchange rate should be a rate that is close to the forward exchange ex that it matches market's expectation. ng Sr is the 3-month future spot exchange rate offered by a forecasting service, P is month forward exchange rate obser is S. If we use F as the benchmark for forecasting performance, which of the following ved in the market. After 3 month, the real spot exchang statement is true? A. The forecasting performs well if Se- S>0 and Se-F> B. The forecasting performs well if Se-S0 and S-F C. The forecasting performs well if ISe-S,lIF D. The forecasting performs well if IS- S,l>IF-Sl

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