Gamma corporation has incurred large losses over the last ten years due to exchange rate fluctuations of the egyptian pound (egp), even though the company has used a market-based forecast based on the forward rate. consequently, management believes its forecasts to be biased. the following regression model was estimated to determine if the forecasts over the last ten years were biased: st = a0 + a1ft - 1 + -t, where st is the spot rate of the pound in year t and ft - 1 is the forward rate of the pound in year t - 1. regression results reveal coefficients of a0 = 0 and a1 = 1.3. thus, gamma has reason to believe that its past forecasts have the realized spot rate. a. overestimatedb. underestimatedc. correctly estimatedd. none of the above

Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.