Suppose that you construct the following regression model to test forecast bias. Y(t) = a + b*X(t-1) + error where y(t) = spot exchange rate at time t and X(t-1) = forecasted exchange rate at time t-1. Test a=0 and b=1 using 1% or 5% statistical significance level. Regression results: a b estimated coefficient 0.053 1.197 p-value 0.291 0.365 Based on the results, explain whether forecasted values are biased (overestimated or understimated) or unbiased and why. (You don't need any equation or calculation) Assauer Inc. would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below. Political Risk Factor Assigned Rating Assigned Weight Blockage of fund transfers 5 40% Bureaucracy 3 60% Financial Risk Factor Assigned Rating Assigned Weight Interest rate 5 20% Inflation 5 20% Exchange rate 3 20% Competition 10% Growth 5 30% Assauer has assigned an overall rating of 30 percent to political risk factors and of 70 percent to financial risk factors.Assauer is not willing to consider Glovanskia for investment if the country risk rating is below 4.0. Should Assauer consider Glovanskia for investment? Show your work