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Question 17 3 pts Assume that you find that forward exchange rates of the Malaysian ringgit quoted in US dollars F(t.$/MYR) is a biased predictors

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Question 17 3 pts Assume that you find that forward exchange rates of the Malaysian ringgit quoted in US dollars F(t.$/MYR) is a biased predictors of future spot exchange rates Sit+1,$/MYR). In particular, find that E[Error(t+1)]=E(S(t+1).$/MRY))- FIL,S/MRY)-2%*0. The expected error term must revert to 0% quickly because no rational investor will volunteer to buy a forward contract with a -2% expected return. True O False No enough information

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