A loop diagram pedagogy: seeing the unseen in the forward market efficiency hypothesis

摘要: Purpose – In an introductory finance course, business school students often report difficulty in dealing with several variables and regression equations testing the forward market efficiency its relevant hypotheses: rate unbiasedness, rational expectations, risk neutrality homogeneous expectations. The paper aims to discuss these issues. Design/methodology/approach Although each of hypotheses may be relatively easy understand one by one, it is harder see their linkages. Thus, author develops loop diagram for supplementing traditional instruction methods. Findings finds that a significant majority prefer approach. Furthermore, using display more understanding than those access conventional instruction. Originality/value provides simple visual aid formulating complete set regressions enables them analyze richer set...