​Assume That the British Pound and Swiss Franc Are Highly

question 71

Multiple Choice

​Assume that the British pound and Swiss franc are highly correlated. A U.S. firm anticipates the equivalent of $1 million cash outflows in francs and the equivalent of $1 million cash outflows in pounds. During a ____ cycle, the firm is ____ affected by its exposure.

• A) ​strong dollar; favorably
• B) ​weak dollar; not
• C) ​strong dollar; not
• D) ​weak dollar; favorably

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Definitions:

Quartile

A statistical term describing each of four equal groups into which a population can be divided based on a distribution.

Histogram

A graphical representation of the distribution of numerical data, showing the frequency of data points in consecutive, non-overlapping intervals.

Frequency Distribution

A Frequency Distribution is a statistical representation showing the number of observations within specified intervals or categories.