Question: 1. Explain the following statement: Exposure is the regression coefficient. Assume that you use the regression model, P = a +bx+e. Explicitly write the equation

1. Explain the following statement: "Exposure is the regression coefficient. Assume that you use the regression model, P = a +bx+e. Explicitly write the equation for the regression coefficient b. On the basis of this regression, show the decomposition of the variability of the dollar value of the asset (i.e., VAR(P)) into two components (write the interim work for the decomposition)

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