Describe three statistics you should obtain from a currency-forecasting service in order to judge the quality of its currency forecasts
What will be an ideal response?
Answer: Three important statistics are the Root Mean Squared Error (RMSE) or Mean Absolute Deviation of its forecasting record, which would provide information on accuracy; the percentage of times they were on the correct side of the forward rate, which would provide useful information on the profitability, and a risk—return statistic (such as the Sharpe ratio), which would provide a characterization of the profitability of using their forecasts in a real time trading strategy.
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The two types of affective message strategies are:
A) emotional and hyperbole B) resonance and emotional C) preemptive and unique selling proposition D) affective and conative
A company receives a 10%, 90-day note for $3300. The total interest due on the maturity date is: (Use 360 days a year.)
A. $192.50. B. $82.50. C. $110.00. D. $330.00. E. $165.00.
The calculation of total asset turnover is:
A. Average total assets multiplied by net sales. B. Net assets multiplied by total assets. C. Gross profit divided by average total assets. D. Average total assets divided by gross profit. E. Net sales divided by average total assets.
Which of the following statements best describes a highly leveraged firm?
A. It is a firm that relies heavily on equity. B. It is a firm that has equity that is twice its debt. C. It is a firm that relies heavily on debt. D. It is a firm that has higher current assets than current liabilities.