[ORDER SOLUTION] Funda- Mental Technique
Finish Chapter 9: Prob. # 1,3,4 (Questions and Applications at end of each chapter)1. Motives for Forecasting Explain corporate motives for forecasting exchange rates.3. Fundamental Forecasting Explain the funda- mental technique for forecasting exchange rates. What are some limitations of using a fundamental technique to forecast exchange rates?4. Market-Based Forecasting Explain the market- based technique for forecasting exchange rates. What is the rationale for using market-based forecasts? If the euro appreciates substantially against the dollar during a specific period, would market-based forecasts have overestimated or underestimated the realized values over this period? Explain.