返回列表 发帖

One more currency sensitivity question

Another currency sensitivity question from Schweser sample exams, told from the point of view of a Canadian investor

Diversified (the stock) is a metal exporter from Arbutia (made up country)

When the Arbutian currency changes by 10%, the value of the Diversified stock changes by 6%. (I understand the negative correlation: as the currency declines, the stock goes up)

Question:

The sensitivity of the Diversified, measured in Canadian Dollars, to changes in the value of the Arbutian currency is closest to:

A) -.6

B) .4

C) 1.6

I'm totally lost

the answer is B

返回列表