Question
The following table shows an MNCs forecasted and realized values for one time period for the Canadian dollar and the euro. Currency Forecasted Value Realized
The following table shows an MNCs forecasted and realized values for one time period for the Canadian dollar and the euro.
Currency | Forecasted Value | Realized Value |
---|---|---|
Canadian Dollar | $0.63 | $0.60 |
Euro | $1.26 | $1.20 |
For the current period, the forecast error (as a percent of the realized value) for the Canadian dollar is _______ percent while the forecast error (as a percent of the realized value) for the euro is _________ percent. (Hint: Input your answers as positive numbers.)
In general, in periods when the value of a currency is more volatile, the resulting forecast error will be (larger or smaller)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started