Question: Question 5 (1 point) The difference between the expected future spot rate and the forward rate is referred to as the risk premium. The existence

Question 5 (1 point)

"The difference between the expected future spot rate and the forward rate is referred to as the risk premium. The existence of the risk premium of the reasons to believe that the forward rate is not the best possible forecast of the future exchange rate.

The statement above is ___.

True
False

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