Question: Explain the factors which can affect to the return on foreign investment securities. You are providing investment advice to international investors on Australian investments. One

  1. Explain the factors which can affect to the return on foreign investment securities. 

  2. You are providing investment advice to international investors on Australian investments.

  3. One of your Japanese clients seeks your advice on average return potential of Westpac Banking Corporation. You are required to calculate the recorded returns for the ANZ's shares in  2019 and 2020 in JPY using the price data given in the following table:

Date

Share prices

AUD

Dividend

AUD

Spot exchange rate

JPY/AUD

31/03/2018

25.13

1.88

JPY 81.61

31/03/2019

25.78

1.74

JPY 79.06

31/03/2020

17.59

1.88

jpy 66.85

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