Which of the following companies would gain from foreign currency depreciation?   a. Companies that export goods and services.   b. Companies that buy bonds issued by the foreign government.   c. Companies that borrow in foreign currency.   d. Companies that invest in the foreign equity markets.

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Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: