--%>
Assignment Help - homework help

Future spot exchange rate

Describe about the conditions under which forward exchange rate may be an unbiased predictor of the future spot exchange rate.

E

Expert

Verified

Forward exchange rate is an impartial predictor of the future spot rate in case: 

a) Risk premium is quite insignificant and 

b) Foreign exchange markets are informational proficient. 

   Related Questions in Financial Accounting

  • Q : Advantage of Historical Cost in

    What is the advantage of Historical Cost in Decision Making?

    		•
  • Q : Define sales budget Give a short

    Give a short introduction of the term “sales budget”? While preparing the sales budget what are the factors which can be taken?

    		•
  • Q : Incremental cash flow How the concept

    How the concept of lost sales can be related to the definition of incremental cash flow.

    		•
  • Q : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:

  • Q : Shadow balance Define the terms shadow

    Define the terms shadow balance?

    		•
  • Q : Progressivism and the womens rights

    What was the link between progressivism and the women’s rights movement?

    		•
  • Q : Evaluation of discount and premium

    Describe how discount and premium are evaluated whenever the assets are priced-to-market. When would law of one price prevail within the international capital markets in case foreign equity ownership restrictions are imposed?

    		•
  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

    		•
  • Q : Leadership qualities required for

    Question Can one person in an organization make a difference? Write an essay on the leadership qualities required for running modern organizations <

    		•
  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•