Which of the following statements are true regarding the impact of exchange rate changes on a firm's value? Select all that apply. Choosing wrong statement has negative point. Operating exposure reflects the impact of exchange rate changes on a company's future investing cash flows. The degree to which a firm's operating cash flows will be affected by random changes in exchange rates is referred to as asset exposure. Asset exposure refers to the risk that the value of assets and liabilities can change due to exchange rate movements. A firm is usually subject to high degrees of operating exposure when either its cost or its price (not both) is sensitive to exchange rate changes. Competitive effect refers to how a currency appreciation or depreciation alters the firm's competitive position in the marketplace and affects operating cash flow. Conversion effect is related to changes in the firm's cost and price, both of which are sensitive to exchange rate changes