Minnesotas stock price will be favorably affected when the


Minnesota's stock price will be favorably affected. When the Canadian interest rate is higher, the forward rate of the Canadian dollar will exhibit a discount, which implies expected depreciation of the C$ if the forward rate is used to predict the future spot rate. The negative coefficient in the regression model suggests that the firm's stock price will be inversely related to the forecast. Thus, the expected depreciation of the C$ will result in a higher stock price.

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Basic Statistics: Minnesotas stock price will be favorably affected when the
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