Question: N rntes Edt is ft able Format Arrange View Share Window Help m summer 2018 final exam-14 (1) 125%- w Zoom Add Page Insert Table

Insert Table Chart TextShape Media Comment 1. Use the data from the

file economic risk attached to answer the following: a. How does a

1% change in the exchange rate for the Brazilian real affect the

price of the stock? b. Is the relationship between the changes in

N rntes Edt is ft able Format Arrange View Share Window Help m summer 2018 final exam-14 (1) 125%- w Zoom Add Page Insert Table Chart TextShape Media Comment 1. Use the data from the file economic risk attached to answer the following: a. How does a 1% change in the exchange rate for the Brazilian real affect the price of the stock? b. Is the relationship between the changes in the value of the real and returns on the stock statistically significant? Explain how you determine this. c. If an investor owning stock in the company were to hedge the real related risk of the stock perfectly, how much lower would the risk of the investment be? (That is, how much lower would the volatility of the stock be after hedging real related risk?) d. When the value of the real increases, how does the stock price change

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