Why is the forward fx rate a biased predictor of the future, Financial Management

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Why is the forward fx rate a biased predictor of the future

1. Please explain the problem with the International Fisher Effect, why do positive interest difference across two countries may cause the FX rate to rise or fall

2. Why is the forward FX rate a biased predictor of the future spot rate?

3. Define Risk Appetite and describe how a risk appetite statement might be developed in a modern financial institution. Explain why it is important.

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Financial Management: Why is the forward fx rate a biased predictor of the future

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