At the time of investing AUD20,000 in US shares, the AUD/USD is 0.6437. If over the next month, the exchange rate changed to AUD/USD0.6706, by how much would an Australian investor benefit or lose, in Australian dollars, if the US sharemarket fell by 2% over this period?

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To calculate the benefit or loss in Australian dollars for an Australian investor who invested AUD 2... View the full answer