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You have been asked to assess the economic exposure of CFS Corp. using the following regression: rt=a+et+ut where rt is the return on CFS's stock

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You have been asked to assess the economic exposure of CFS Corp. using the following regression: rt=a+et+ut where rt is the return on CFS's stock at time t,et is the percentage change in the dollar value of the Japanese yen at time t (i.e., dollars per yen), and ut is the regression error term. The regression output shows: = slope coefficient =+1.12;p-value of slope coefficient = 0.0150; R-squared =R2=0.44 a) ( 6 points total; 2 each part) Provide an interpretation of the regression output, explaining: i) the p-value, ii) the slope coefficient, and iii) the R-squared. b) (2 points) Based on the regression output, does CFS Corp. stock respond negatively or positively to an appreciation of the U.S. dollar? Explain

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