Identify the Indicated Submatrix $A = \left[ \begin{array} { r r r | r } 0 & 1 & - 4 & - 5 \\ 4 & - 1 & 0 & 7 \\ \hline 2 & 5 & - 7 & 0 \end{array} \right]$

question 33

Multiple Choice

Identify the indicated submatrix.
- $A = \left[ \begin{array} { r r r | r } 0 & 1 & - 4 & - 5 \\ 4 & - 1 & 0 & 7 \\ \hline 2 & 5 & - 7 & 0 \end{array} \right]$ . Find $A _ { 12 }$

• A) \([ 4 ]\)
• B) 1
• C) \(\left[ \begin{array} { l l l } 2 & 5 & - 7 \end{array} \right]\)
• D) \(\left[ \begin{array} { r } - 5 \\ 7 \end{array} \right]\)

---

Definitions:

Economic Exposure

The extent to which a company's value is affected by unforeseen changes in exchange rates.

Transactions Exposure

The risk of exchange rate changes affecting the value of financial transactions denominated in a foreign currency.

Hedging

A strategy used to offset potential losses or gains that may be incurred by a companion investment.

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may suffer as a result of fluctuating exchange rates.