AndyNZ

Unfortunately I used different info in my example than what was in the original question you gave.
in the original question you had:
Arbutian currency change (relative to Canadian Investor) of 10%,
Diversified security loss of 6%
so…
if foregn currency appreciated by 10% so with no change in Diversified security you gain 10% to your value from the translation.
But the stock goes down by 6% so even though you gain the 10% in currency terms you’ve lost 6% from the stock return (-.06 +.1 = .04 or 4%)
So that’s the RETURN that you receive as the Canadian investor, now you can find the CURRENCY EXPOSURE which is:
Domestic exposure = return/change in spot
ie. domestic exposure = .04/.1 = .4
I interperet this kind of like duration in the fact that when calcing duration you shock the int rates by a small # of bps but the interpretation is if you had shocked them by 100bps
The .4 is the return you would get if the foreign currency changed by 100%. ie. you would see a 40% return
Again, I am not 100% on this, this is just how I interpreted it as I was reading about it.