From the Perspective of the U $P = a + b \times S + e$

question 86

Multiple Choice

From the perspective of the U.S.firm that owns an asset in Britain,the exposure that can be measured by the coefficient b in regressing the dollar value P of the British asset on the dollar/pound exchange rate S using the regression equation $P = a + b \times S + e$ is

• A)asset exposure.
• B)operating exposure.
• C)accounting exposure.
• D)none of the above

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