The moving average crossover rule A is a fundamental approach to forecasting

The moving average crossover rule a is a fundamental

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59. The moving average crossover rule A. is a fundamental approach to forecasting exchange rates.B.states that a crossover of the short-term moving average above the long-term moving average signals that the foreign currency is appreciating.C. states that a crossover of the short-term moving average above the long-term moving average signals that the foreign currency is depreciating.D. none of the aboveTopic: Technical Approach60. According to the technical approach, what matters in exchange rate determination is Topic: Technical Approach61. Studies of the accuracy of paid exchange rate forecasters Topic: Performance of the Forecasters62. According to the research in the accuracy of paid exchange rate forecasters, Topic: Performance of the Forecasters63. According to the research in the accuracy of paid exchange rate forecasters, A.you can make more money selling forecasts than you can following forecasts.B. the average forecaster is better than average at forecasting.C. the forecasters do a better job of predicting the future exchange rates than the market does.D. none of the above.Topic: Performance of the Forecasters6-12
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Chapter 06 - International Parity Relationships and Forecasting Foreign Exchange Rates64. According to the monetary approach, what matters in exchange rate determination are Topic: Appendix 6A: Purchasing Power Parity and Exchange Rate Determination65. According to the monetary approach, the exchange rate can be expressed as Topic: Appendix 6A: Purchasing Power Parity and Exchange Rate DeterminationShort Answer QuestionsPlease note that your answers are worth zero pointsif they do not include currency symbols ($, €)66. If you borrowed €1,000,000 for one year, how much money would you owe at maturity? Topic: Covered Interest Arbitrage67. If you borrowed $1,000,000 for one year, how much money would you owe at maturity? Topic: Covered Interest Arbitrage68. If you had borrowed $1,000,000 and traded for euro at the spot rate, how many € do you receive? Topic: Covered Interest Arbitrage6-13
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Chapter 06 - International Parity Relationships and Forecasting Foreign Exchange Rates69. If you had €1,000,000 and traded it for USD at the spot rate, how many USD will you get? 70. USING YOUR PREVIOUS ANSWERS and a bit more work, find the 1-year forward exchange rate in $ per € that satisfies IRP from the perspective of a customer that borrowed $1m traded for € at the spot and invested at i4%. =
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  • Summer '15
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  • Exchange Rate, Inflation, Foreign exchange market, Forward contract, international parity relationships

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