Question
Go to finance.yahoo.com and search BHP.AX in the stock quotations box. Then scroll down and click on historical prices. Set the data range and access
Go to finance.yahoo.com and search BHP.AX in the stock quotations box. Then scroll down and click on historical prices.
Set the data range and access the last 20 quarters. Compute the % change in the stock price of BHP Billiton from one quarter to the next.
Then go to https://www.oanda.com/solutions-for-business/historical-rates/main.html and obtain direct exchange rates of the Canadian dollar and EUR that match up with stock price data. Run a regression analysis with the quarterly percentage change in BHP billiton's stock price as the dependent variable and the quarterly change in the Canadian dollar's value as the independent variable. Does it appear that BHP Billiton's stock price is affected by changes in the value of the Canadian dollar? If so, what is the direction of the relationship? Is the relationship strong? ( Check the R-squared statistics) Based on this relationship, do you think BHP Billiotn should attempt to hedge its economic exposure to movements in the Canadian dollar?
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