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VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS TESTING THE UNBIASED FORWARD RATE HYPOTHESIS IN VIETNAM FOREX MARKET In Partial Fulfillment of the Requirements.

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In this question, when we say that the 90-day forward exchange rate is an unbiased estimator of the future spot exchange rate, it means that on average, the future spot exchange rate, a random variable in itself, will have a value that is equal to the 90-day forward exchange rate, a quantity that is observable right ...

The unbiased forward rate hypothesis (UFRH) is one of the most tested hypotheses in international finance. The hypothesis holds that the forward exchange rate should be an unbiased predictor of the future spot exchange rate, given the assumption of risk neutrality and rational expectation.

The forward rate is used in forecasting, as the exchange rate reflects the market estimate of the spot rate at the end of the forecasting period. Based on the research conducted by Chiang (1986) of the samples used, empirical evidence indicates spot rates and forward rates are significant as predictors of future spots.

It is well known that the forward exchange rate must be an unbiased predictor of the corresponding future spot rate if (1) the market is efficient, (2) there are no transaction costs and (3) no risk aversion. This is so because, should a bias appear under these conditions, arbitrage would immediately eliminate it.

The results show that the forward rate, while generally producing unbiased forecasts, fails to track the fluctuations in future spot rates and poorly reflects their variations.

It is well known that the forward exchange rate must be an unbiased predictor of the corresponding future spot rate if (1) the market is efficient, (2) there are no transaction costs and (3) no risk aversion. This is so because, should a bias appear under these conditions, arbitrage would immediately eliminate it.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232