If a Firm Does Not Have Foreign Subsidiaries, It Is

question 26

Multiple Choice

If a firm does not have foreign subsidiaries, it is not subject to ____.

• A)transaction exposure
• B)economic exposure
• C)A and B
• D)translation exposure

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of naturally occurring data; synonymous with Gaussian distribution.

Normal Random Variable

A variable that is distributed in a way that fits the normal (Gaussian) distribution, characterized by its mean and standard deviation.

Mean

The average of a set of numerical values, calculated by adding them together and dividing by the number of values.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.