Distinguish among translation exposure, transaction exposure, and economic exposure. Define each concept and then indicate how they may be interrelated. We discussed risk aversion as being descriptive...

Distinguish among translation exposure, transaction exposure, and economic exposure. Define each concept and then indicate how they may be interrelated.

We discussed risk aversion as being descriptive of investor behavior. Can you think of any real-world behavior that you might consider to be evidence of the existence of risk preferrers?