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

Assume there is a regression model that was able to identify the factors which affected exchange rate movements in a recent four year period. Also, suppose that the sensitivity of the exchange rates movements to each factor was precisely quantified. Is there any reason not to expect superior forecasting results from this method in the future? Elaborate.

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