Assignment

• The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market. Lately, currencies have been on a rollercoaster ride with record breaking highs and lows. The world of foreign exchange is dominating news headlines, but what does it mean, and more importantly, what do we need to know before getting on board?

It is important to understand that trading the Foreign Exchange market involves a high degree of risk, including the risk of losing money. Any investment in foreign exchange should involve only risk capital and never trade with money that we cannot afford to lose.

Assignment Objective

This assignment will expose students in financial trading market particularly in international foreign currency exchange market.

Instruction

Assume that you are a fund manager with an asset management company which deals in managing investment in high risk portfolio of foreign currency exchange (FOREX). You are recently assigned by your Director, Dealing to handle a portfolio worth of RM1,000,000.00.You need to invest the money in FOREX market consist of at least THREE (3)different currencies.

The duration of your investment would be from 1^stJune 2020 to 30^thJune 2020.

This assignment is split into two parts.

PART A: Selecting and Proportioning the Portfolio. This part must consist of the following items:

Choice of currencies

Historical Exchange Rate movement of each currencies towards Malaysian Ringgit for the past 12 months (Use Line graph, monthly)

Use Ringgit / Foreign Currency.

Justification of choice of currencies.

Proportioning the RM1,000,000.00 into the chosen currencies.

Justification of the proportion.

PART B: Portfolio Return and Performance. This part must consist of the following items:

Exchange rates movement for each currencies from 1^st June 2020 to 30^thJune 2020.(Use Line graph, daily)

Total value purchased (1^st June 2020) and total value sold(1^st June 2020) for each currency. Use closing valuefor the day.

Use Ringgit / Foreign Currency.

Total Return / Loss from the portfolio.

Justification for the final performance.

USE only: BANK NEGARA MALAYSIA Portal

http://www.bnm.gov.my/index.php?ch=statistic&pg=stats_exchangerates

Use American Psychological Association (APA) referencing stylefor this assignment.

Format of report: Arial, Size 12, Justify, 1.5 spacing