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On the basis of regression equation P -a+b+ e we can decompose the variability of the dollar value of the asset, Var(P), into two separate

On the basis of regression equation P -a+b+ e we can decompose the variability of the dollar value of the asset, Var(P), into two separate components Var(P) = b-Var(S)-Var(e). Let's bxVar(S) = 5900, Var(S) 0.007 and Var(e) = 201. Which of the following statement is correct? Select one: O a. The variability of the dollar value of the asset that is related to random changes in the exchange rate is 0.007 b. The variability of the dollar value of the asset that is related to random changes in the exchange rate is 201. c. The dollar value variability that is independent of exchange rate movements is 201 d. The dollar value variability that is independent of exchange rate movements is 5900

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