When discussing exchange rate forecasting, the inefficient market school of thought would agree that

Multiple Choice

investing in forecasting services can improve the foreign exchange market's estimate of future exchange rates.

forward exchange rates are the best possible predictors of future spot exchange rates.

companies cannot beat the markets because forward rates reflect all available information about likely future changes in exchange rates.

the foreign exchange market is efficient at setting forward rates, which are unbiased predictors of future spot rates.

forward exchange rates represent market participants' collective predictions of likely spot exchange rates.