This chart shows the evolution of the exchange rate between the euro and the yen during 2014, as we can see there is a significant variation in the price, which implies a risk, called exchange rate risk.

Based on the data provided in the chart, it is requested:

1. Evaluate the evolution of the exchange rate of the last two months of the year and briefly explain how it could affect the following groups:

to. Japanese investors investing in Europe

b. European investors investing in Japan

c. Japanese companies that import European products

d. Japanese companies that export products to Europe

2. How could the above groups be covered with respect to the exchange rate risk? List two alternatives.