Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates - Dissertation Example

Only on StudentShare

Extract of sample
Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates

This knowledge will enable the formulation of trading strategies to enhance the effectiveness of market entry and exit, to properly time the purchase of currencies at the lows, and the sale at the highs, or to adopt an adequate hedging position. The study employed three methods of determining the existence of EMH with the intention of arriving at results that corroborate each other, since any one method taken alone can never be assuredly accurate. The first method employs the regression of future spot rates against forward exchange premiums. The second method tests for a confirmation of the unbiased forward rate hypothesis which is indicated by the co-integration of the forward exchange rate and the future spot rate. The third method employs an analysis of EMH on real terms also through regression modeling and equation estimation. Each of the three methods provided evidence that the efficient market hypothesis is valid in the currencies exchange market, specifically in the Swiss franc – US dollar spot and forward exchange rates. The weak form of market efficiency has been tested and validated, for which reason investors and business would most likely not realize abnormal profits through the use of methods of technical analysis for price forecasting. ...Show more

Summary

Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates Abstract The aim of this research study is to discover whether or not the efficient market hypothesis (EMH) holds true in the currencies market, specifically in the Swiss franc to U.S. dollar currencies exchange…
Author : josie21
Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates"
with a personal 20% discount.
Grab the best paper

Related Essays

The impact on China foreign exchange reserve if china aids European union debt crisis
The economic condition in Europe has been getting worse with the passage of time since the financial crisis of 2007. European countries are in need of aid and investment and it has been predicted that some of the countries like Greece and others might not be able to pay off their loan and therefore these countries will default.
35 pages (8750 words) Dissertation
The relation between intrest rates and investment and investment in Islamic products
…………………………………………………………………….7 CHAPTER 2: LITERATURE REVIEW 1.1 Investment and Risks of investments in Islamic financial products……..….7 1.2 Previous studies in investment in Islamic financial products………………………………..9 1.3 Gaps in Literature………………………………………………………………………………………………..11 CHAPTER 3: RESEARCH Methodology 3.1 Research Methods and Data Collection……………………………………………12 3.2 Econometric Model……………………………………………………………….
11 pages (2750 words) Dissertation
Affects of Interest Rates on Consumption in the UK
Abstract The present scenario in the UK economy with respect to the pattern of consumption in the retail sector has evolved as a matter of concern. Interest rate is an important tool of monetary policy for controlling the unusual movements in the economy.
65 pages (16250 words) Dissertation
Literature review and project specification : The influence of changing currency rates on consumers travel behaviour: Exploring
The key aspects of consumer travel behaviour include tourist destinations, hospitality, tourists’ attractions; tour operation, transport and retail travel (Swarbrooke & Horner, 2006). Various factors have affected the consumer travel behaviour in 2009/2010 including the economic conditions like consumer confidence, rising wealth in emerging economies; focus on frugal living; exchange rates; unpredictable events, emphasis on consumer health; increasing online travel packages; greener travelling; Gay tourism and demographic trends (Euromonitor, 2010).
8 pages (2000 words) Dissertation
Applied Econometrics Project--------Exchange rates and commodity price:the case of America Agriculture exports
This paper explores the marginal propensities to consume in the US and UK economies. Essentially, the validity of the Keynesian theory of consumption is the focal point. A review of the fundamentals of Keynesian consumption theory is conducted and l the developments this theory has undergone since its inception are explored.
28 pages (7000 words) Dissertation
How shipowners deal with bad freight rates in a shipping recession and compare liner freight rates with dry bulk freight rates
Currency, exchange rates, hedging strategies, procurement and asset value, marketing, demand versus supply, competitor pricing, and tonnage were only some of the considerations identified through secondary research in this industry. A primary study was conducted to determine correlations in real-life maritime shipping practice to the aforementioned variables and level of dependency in each of these areas in setting prices during recessionary environments.
30 pages (7500 words) Dissertation
Systemic Professional Development and its Effect on Novice Teacher Retention Rates, A Qualitative Research Case Study
This, however, does not make it any less urgent to find a solution. The proposed reasons for the high attrition rates were explored in this chapter. Studies have found many different factors influencing teacher retention, including the social climate of the school, the attitudes of colleagues, and the amount of assistance from administration.
7 pages (1750 words) Dissertation
Predictability of Foreign Exchange Rates
Simultaneously, the implications of predictability of exchange rates have also been identified so that measures can be taken to reduce the erratic behavior of exchange rates. Acknowledgements I am thankful to all my faculty members, colleagues and the organization I am employed at for providing me with an opportunity to study the change in predictability of exchange rates in the Bretton Woods era and after it.
24 pages (6000 words) Dissertation
Impact of foreign exchange rate on stock returns
Basically, if the ADF statistic exceeds the critical value in each of the tests, then the null hypothesis of the unit root cannot be accepted. On the other hand, if the test statistic does not exceed the critical value, then the null hypothesis is accepted and the series is then said to be non-stationary (Dickey and Fuller, 1981).
13 pages (3250 words) Dissertation
App that Rates Fitness Apps
The market have varying apps designed to help different people with different fitness practices. However, some of them cannot enable the users to monitor their progress as they continue to carry out the exercises. In this paper, the design focuses on objectives for building an app that lists fitness apps in terms of positive and negative feedbacks.
2 pages (500 words) Dissertation
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT