Problem $9\mathrm{.}11($Foreign Exchange Market Efficiency$)$

eBook

Assume that foreign exchange markets were found to be weak$-$form efficient. What does this suggest about utilizing technical analysis to speculate in euros?

Technical analysis be able to achieve excess profits if foreign exchange markets are weak$-$form efficient. as indicators about future rates? After all, today's quoted rates should reflect all relevant information.

I. Today's rates provide only short$-$term forecasts of future exchange rates while MNCs may desire to assess long$-$term forecasts.

II$.$ Today's rates do not provide information about the range of possible outcomes while MNCs may desire to assess this information.

Continue without saving

$1.($should$/$should not$)$

$2.($I$/$II$/$III$)$