Suppose that Kent Co. is a US-based MNC that is evaluating its forecasts of the British pound. This MNC wishes to perform a graphical analysis as part of the evaluation. The following graph measures the forecasted value of the pound, while the vertical axis measures the realized value of the pound. On the following graph, use the blue line (circle symbols) to plot the perfect forecast line. Then, use the purple point (diamond symbol) to shade the region of the graph that corresponds to the region of upward bias. Finally, use the gray point (star symbol) to shade the area corresponding to the region of downward bias, O 1.7 REALIZED VALUE (U.S. Dollars per pound) 1.6 Perfect Forecast Line 1.5 1.4 Region of upward bias 1.3 1.2 Region of downward bias 1.1 1.0 0.9 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 PREDICTED VALUE (U.S. Dollars per pound)California Co must pay 5 million Mexican pesos by tomorrow, in exchange for supplies that it has agreed to purchase from a supplier in Mexico. The peso depreciated today against the dollar by 5 percent. Using time series data of past currency fluctuations, California observes whenever the peso depreciates against the dollar by more than 1 percent, then the peso tends to depreciate again by about 60 percent of the initial change. Given the results of the V forecasting by California Co, the firm will most likely decide to V