Which of the following statements about rational expectations is true? OA. Rational expectations are always accurate. B. Rational expectations theory suggests that forecasts errors of expectations are sizable and can be predicted. OC. Rational expectations are the same as adaptive expectations. OD. Rational expectations are identical to optimal forecasts.

Which of the following statements about rational expectations is true? OA. Rational expectations are always accurate. B. Rational expectations theory suggests that forecasts errors of expectations are sizable and can be predicted. OC. Rational expectations are the same as adaptive expectations. OD. Rational expectations are identical to optimal forecasts.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter9: Forecasting Exchange Rates

Section: Chapter Questions

Problem 20QA

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