Assume the following information: Predicted Value of Realized Value of Period New Zealand Dollar New Zealand Dollar 1 $.52 $.50 2 .54 .60 3 .44 .40 4 .51 .50 Given this information, What is absolute forecast error as a percentage of the the second period? a. 6.5% b. 6% c. 26% d. 10% e. 1.5%

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter9: Forecasting Exchange Rates
Section: Chapter Questions
Problem 6BIC
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Assume the following information: Predicted Value of Realized Value of Period New Zealand Dollar New Zealand Dollar 1 $.52 $.50 2 .54 .60 3 .44 .40 4 .51 .50 Given this information, What is absolute forecast error as a percentage of the the second period? a. 6.5% b. 6% c. 26% d. 10% e. 1.5%

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