3. The forex market is considered by many economists to be efficient. What does market efficiency mean? What is the best forecasting method for future prices in an efficient market? What does market efficiency suggest about the need to hedge or not hedge a currency exposure? 4. Operating exposure to exchange rate changes exists for virtually all firms to some degree. Discuss the types of operating exposure the University of San Francisco faces. What could USF do to mitigate this exposure, both in the short-term and on a longer-term basis? Consider marketing, operating, and financial strategies.