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A U.S. firm holds an asset in Great Britain and faces the following scenario: Where, P= Pound sterling price of the asset held by the

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A U.S. firm holds an asset in Great Britain and faces the following scenario: Where, P= Pound sterling price of the asset held by the U.S. firm P= Dollar price of the same asset The "exposure" (i.e. the regression coefficient beta) is Hint: Calculate the expression Var(s)Cov(P,S) Multiple Choice 2,500 7,500 2,500 none of the options

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