Forecast future and forward exchange rate
It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?
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This states that the exchange markets are information ally proficient. Therefore, until one has some private information which is not reflected in the current market rates, it might be difficult to beat the market.
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Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets. How will non-tradable asset be priced?
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