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Capital Market ExpectationsHard

During 2015–2019, a frontier market currency maintained a stable peg against the US dollar while offering 6% higher interest rates than US deposits. In early 2020, the peg collapsed and the currency lost 70% of its value. An analyst using only the 2015–2019 data to forecast returns would most likely commit what error?

CFA Level III — Capital Market Expectations Practice Question | AcadiFi | AcadiFi