What are four main risks which an Australian investor faces when investing in overseas equity markets? (ii)
Question:
What are four main risks which an Australian investor faces when investing in overseas equity markets?
(ii) Briefly explain two ways by which such an investor who has made such an investment may reduce these risks.
b)The following indirect rates against the Australian dollar are available.
USD / AUD 0.5923.
GBP/ AUD 0.5137.
Calculate the cross rate, viz., the GBP / USD rate, and provide a brief interpretation
of what this rate means
Lisa Brown, an Australian investor, bought a French -based investment at a price of EUR105,000. One year later, Lisa Brown sold the investment for EUR136,500. Over the time of her investment, the EUR / AUD exchange rate rose by 25%.What was Lisa's overall percentage return in AUD? Show all calculations, and the answer as a percentage correct to 2 decimal places
Expert Answer:
i Four main risks that an Australian investor faces when investing in overseas equity markets are 1 Exchange Rate Risk Fluctuations in exchange rates ... View the full answer
