Inscribe a detailed paper on “Investment Analysis: Australia and UK”
1. You may take a long or short position in each foreign currency or long position in one or short position on the other.
2. Justify your investment decisions based on a trend (uptrend or downtrend) analysis.
3. Expected relative inflation rate between two nations
4. Investment position based on the relative interest rate.
5. Expected interest rate
6. Other economic Variables
7. Select the two currencies in your portfolio which have negative correlations or a weak correlation for the reduction of risk and risk management purpose.
8. Calculate your return for each investment and overall return