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Select a Multinational Company that has a least 6 0 monthly return observations available at finance.yahoo.com and estimate the firm s level of economic exposure
Select a Multinational Company that has a least monthly return observations available at finance.yahoo.com and estimate the firms level of economic exposure using regression analysis, as in Part Exchange rate information is available at for example Historical ratesLinks to an external site.
As part of your answer, provide the following information:
Identify the Multinational Company
Assess qualitatively the firms exposure to exchange rate risk after examination of the firms revenue information by geographical segment for example, from SEC K filings at US SECURITIES AND EXCHANGE COMMISSIONLinks to an external site. and then Filings Use this to briefly explain your choice of currencies to use in the regression analysis.
Provide and interpret the results of your regression analysis as you did in Part Assess quantitatively the level of economic exposure of the firm relative to movements in the currency or currencies you selected. In your interpretation, follow the structure of Part
Important: Make sure the dates for exchange rates and stock prices match when you put them both in the same Excel file as in Part Use adjusted prices if you get your monthly stock prices from Yahoo FinanceLinks to an external site. ie stock prices adjusted for stock splits
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