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If the Exchange Rate Falls from 120 Yen Per Dollar

question 106

Multiple Choice

If the exchange rate falls from 120 yen per dollar to 100 yen per dollar, the dollar has ________ and the yen has ________.


Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification. Also known as market risk or undiversifiable risk.

Capital Asset Pricing Model

A financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Security's Beta

A measure of a security's volatility relative to the overall market or a specified benchmark.

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