CHAPTER 10 QUIZ 4

CHAPTER 10   QUIZ 4
 Currency Correlations. Kopetsky Co. has net receivables in several currencies that are highly
correlated with each other. What does this imply about the firm- overall degree of transaction
exposure? Are currency correlations perfectly stable over time? What does your answer imply
about Kopetsky Co. or any other firm using past data on correlations as an indicator for the future?

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