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Aggie Co., a U.S. based firm, conducts international business in Canada, Mexico and Japan. The firm uses regression technique to measure its economic exposure to

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Aggie Co., a U.S. based firm, conducts international business in Canada, Mexico and Japan. The firm uses regression technique to measure its economic exposure to the foreign exchange rate risk. Using its own stock price data of the last thirty quarters, the firm estimates the following regression model: Y = 0, +ajx ecap + a, xemxp+a; * @ppy+ where Y is the percentage change of the firm's quarterly stock price, ecap is the quarterly percentage change of Canadian dollar exchange rate, exp is the quarterly percentage change of Mexican peso exchange rate and Cypy is the quarterly percentage change of Japanese yen exchange rate, is the regression error term. The regression analysis results are shown below. SUMMARY OUTPUT Regression Stateta Multiple R Square Adjusted R Square Standard Error Observations 0.908 0.824 0.803 0.127 30 Regression Statet Multiple R R Square Adjusted R Square Standard Error Observations 0.908 0.824 0.803 0.127 30 ANOVA of SS F Significance 40.498 0.000 Regression Residual Total 3 26 29 MS 0.650 0.016 1950 0.417 2.368 Coefficients Standard Error Stor Pevolve Lower 95% Upper 95% Intercept 5.476 0.990 5.531 0.000 3.441 7.512 3.135 0.739 4.241 0.000 1.616 4.655 1.103 0.805 1 371 0.182 -0.551 2758 e -2.357 0.761 -3.098 0.005 -3.921 -0.793 Can you tell which foreign currency (or currencies) has statistical significant impact on Aggie Co.'s stock price (based on a 95% conference level)? A. Only Canadian Dollar. B. Both Canadian Dollar and Mexican Peso. C. Both Canadian Dollar and Japanese Yen. D. Only Japanese Yen

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