Question: Assume there is a regression model that was able to identify the factors that affected exchange rate movements in a recent four-year period. Also, suppose

Assume there is a regression model that was able to identify the factors that affected exchange rate movements in a recent four-year period. Also, suppose that the sensitivity of the exchange rate's movements to each factor was precisely quantified.

For your initial post, address the following:

  • Is there any reason not to expect superior forecasting results from this method in the future?
  • Explain why or why not and use supporting resources.

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