28. A purely domestic firm that sources and sells only domestically A faces exchange rate risk to the extent that it has international competitors in the domestic market B. faces no exchange rate rislk C. should never hedge since this actually increase its currency exposure D. both B and C are correct 29. Suppose the variance of the price is 0.010, the variance of the spot rate is 0.005 the covariance of the price and the of spot rate is 25. What is the exposure coefficient, beta? A. 5,000 B. 2,500 C. 0.5 0,005 D. 0.1