CHAPTER 10 QUIZ 20
Using Regression Analysis to Measure Exposure.
a. How can a U.S. company use regression analysis to assess its economic exposure to
fluctuations in the British pound?
b. In using regression analysis to assess the sensitivity of cash flows to exchange rate
movements, what is the purpose of breaking the database into sub periods?
c. Assume the regression coefficient based on assessing economic exposure was much higher in
the second sub period than in the first sub period. What does this tell you about the firm-
degree of economic exposure over time? Why might such results occur?
USA 
India