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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