Emily and Kate have been researching economic forecasts and are trying to predict if one particular economic variable leads to an increase in demand for hospital services. They are frustrated by economic forecasts from the professionals and are finding the forecasts to be a bit 'hit-and-miss'.

Note: You are required to undertake independent research to answer the following questions.

(a)  Explain to Emily and Kate the impact of economic forecasting on asset prices.

(b)  Select a relevant economic variable that can be forecast and describe how changes in the variable may impact on their planned overseas expansion to New Zealand, Hong Kong and Singapore.
 

Answer rating: 100% (QA)

Impact of Economic Forecasting on Asset Prices a Economic forecasting plays a significant role in shaping asset prices due to its influence on investor expectations and risk perceptions Heres how Anti... View the full answer