Q. You have 100,000 AUD to invest and are considering potential overseas investments. You are a strongly risk - averse investor and desire for the investment to have a minimal risk profile. a) Calculate the final AUD value of the given four potential investments. b) Which potential investment do you find the most appealing? c) Describe any significant complicating investment issues you should consider? Quotation Spot Bid Spot Ask Forward Bid Forward Ask AUD/USD 0.6579 0.6581 0.6650 0.6661 EUR/AUD 1.6473 1.6475 1.6810 1.6909 GBP/AUD 1.9211 1.9213 1.8959 1.9059 Note: You have been presented with outright forward quotations. Interest Rates: Country Australia U.S. Europe U.K. Interest Rates 4.35% p.a. 5.5% p.a. 4.5% p.a. 5.25% p.a.

Q. You have 100,000 AUD to invest and are considering potential overseas investments. You are a strongly risk - averse investor and desire for the investment to have a minimal risk profile. a) Calculate the final AUD value of the given four potential investments. b) Which potential investment do you find the most appealing? c) Describe any significant complicating investment issues you should consider? Quotation Spot Bid Spot Ask Forward Bid Forward Ask AUD/USD 0.6579 0.6581 0.6650 0.6661 EUR/AUD 1.6473 1.6475 1.6810 1.6909 GBP/AUD 1.9211 1.9213 1.8959 1.9059 Note: You have been presented with outright forward quotations. Interest Rates: Country Australia U.S. Europe U.K. Interest Rates 4.35% p.a. 5.5% p.a. 4.5% p.a. 5.25% p.a.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 8LTAI

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