Explain the role that forward rates play in making investment decisions

What will be an ideal response?

Although a forward rate may never be realized in practice, it is still important for investors because it tells them about their expectations relative to what the market consensus expects. This allows them to make decisions based upon the market expects. For example, forward rates indicate how an investor's expectations must differ from the market's consensus in order to make the correct decision. Some investors may not speak about forward rates as being market consensus rates. Instead, they refer to forward rates as being hedgeable rates. For example, by buying the one-year security, the investor can hedge the six-month rate six months from now.

21."Forward rates are poor predictors of the actual future rates that are realized. Consequently, they are of little value to an investor." Explain why you agree or disagree with this statement.

Business

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Which of the following is a difference between second-party data and third-party data?

A) Second-party data are obtained from individuals or entities that are related to the subject, whereas third-party data are obtained from entities that maintain records regarding the subject. B) The advantage of second-party data is that it can be obtained independently by the forensic accountant, whereas the advantage of third-party data is that it is outside the subject's ability to manipulate. C) Second-party data falls under the realm of primary research, whereas third-party data falls under the realm of secondary research. D) Second-party data might require more time to obtain, whereas third-party data are readily available to the forensic accountant.

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The merchandise inventory account always reflects the current inventory on hand

a. True b. False Indicate whether the statement is true or false

Business