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Business, 01.08.2020 03:01 jjelzy

Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is mainly U. S. producers of chairs. You wish to assess the relationship between the percentage change in the firm’s stock price (SPt) and the percentage change in the peso's value relative to the dollar (PESOt). SPt is the dependent variable. You apply the regression model to an earlier subperiod and a more recent subperiod. In the recent subperiod, you increased your importing volume. You should expect that the regression coefficient in the PESOt variable would be in the first subperiod and in the second subperiod.

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