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Q31 ) On the basis of regression equation P = a + b S + e, we can decompose the variability of the dollar value

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Q31 ) On the basis of regression equation P = a + b S + e, we can decompose the variability of the dollar value of the asset, VAR(P), into two separate components: VAR(P) b2x VAR(S) + VAR(e). The first term in the right-hand side of the equation, b2 x VAR(S) represents A) the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate, as well as the residual part of the dollar value variability that is independent of exchange rate movements. B) the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate C) the residual part of the dollar value variability that is independent of exchange rate movements D) none of the options Q32) On the basis of regression equation P = a + b S + e, we can decompose the variability of the dollar value of the asset, VAR(P), into two separate components: VAR(P)- b2 x VAR(S) +VAR(e). The second term in the right-hand side of the equation, VAR(e) represents A) the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate B) the part of the variability of the dollar value of the asset that is related to random changes in the exchange rate, as well as the residual part of the dollar value variability that is independent of exchange rate movements. C) the residual part of the dollar value variability that is independent of exchange rate movements D) none of the options

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