Question: In the equation Profits = a + b ($/ exchange rate), b is a measure of Multiple Choice the ratio of the firm's beta in

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

Multiple Choice

  • the ratio of the firm's beta in terms of dollars to the firm's beta in terms of pounds.

  • the sensitivity of profits to the exchange rate.

  • the frequency with which the exchange rate changes.

  • the firm's beta when measured in terms of the foreign currency.

  • the sensitivity of the exchange rate to profits.

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