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(3) For the foreign currency exposure, you may Obtain foreign exchange rates of the selected currencies against USD (in the notation of foreign_currency/USD) from
(3) For the foreign currency exposure, you may Obtain foreign exchange rates of the selected currencies against USD (in the notation of foreign_currency/USD") from Jan/2010 to Jan/2020 in a monthly basis (if the selected company only has a shorter data period, then only use the available period). Obtain the stock price of the selected company for the same period in the same basis. Compute monthly returns of those market data. Then, (a) prepare graphs having the monthly change in the stock price and the currency rate, and rationalise the results. (b) conduct a regression using the monthly change in the stock price as a dependent variable and the monthly change in the foreign exchange rates as the independent variables. Explain the results. (c) Discuss why or why not your initial hypotheses regarding the importance of the selected currencies are supported by the above analyses.
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