In the Equation Profits = a + B × ($/₤

question 19

Multiple Choice

In the equation Profits = a + b × ($/₤ exchange rate) , b is a measure of

• A) the firm's beta when measured in terms of the foreign currency.
• B) the ratio of the firm's beta in terms of dollars to the firm's beta in terms of pounds.
• C) the sensitivity of profits to the exchange rate.
• D) the sensitivity of the exchange rate to profits.
• E) the frequency with which the exchange rate changes.

---

Definitions:

WISC-IV

Wechsler Intelligence Scale for Children, Fourth Edition; a standardized test designed to measure the intellectual ability of children between the ages of 6 and 16.

Intelligence

Relates to the capacity for learning, understanding, problem-solving, and adapting to new situations.

Developmentally Disabled Adults

Individuals over the age of 18 who experience significant limitations in intellectual functioning and adaptive behavior, impacting their daily life and activities.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors and attitudes.