Business

FinanceInternational Financial ManagementLimitations of a Fundamental Forecast Syracuse Corp. believes that future real interest rate movements will affect exchange rates, and it has applied regression analysis to historical data to assess this relationship. It will use regression coefficients derived from this analysis along with forecasted real interest rate movements to predict exchange rates in the future. Explain at least three limitations of this method.FindFind*launch*

14th Edition

Madura

Publisher: Cengage

ISBN: 9780357130698

Chapter 9, Problem 8QA

Textbook Problem

Limitations of a Fundamental Forecast Syracuse Corp. believes that future real interest rate movements will affect exchange rates, and it has applied regression analysis to historical data to assess this relationship. It will use regression coefficients derived from this analysis along with forecasted real interest rate movements to predict exchange rates in the future. Explain at least three limitations of this method.

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