Donald Company, a manufacturing company based in San Juan City, Philippines, purchased raw materials from a foreign company denominated in foreign currency. Which of the following is correct?  A. If the foreign currency appreciates, Jonald will recognize foreign exchange loss. B. If the foreign currency appreciates, Jonald will recognize foreign exchange gain. C. If the foreign currency depreciates, Jonald will recognize foreign exchange loss.  D. Any gain or loss will be deferred until the date of settlement.

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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: