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Assume the current 12-month interest rates of Australia and US are 2.1% p.a. and 2.4% p.a. respectively. For Australian investors who hold an asset in
Assume the current 12-month interest rates of Australia and US are 2.1% p.a. and 2.4% p.a. respectively. For Australian investors who hold an asset in US$, if the unhedged return in A$ is -9.7%, what's the return from currency surprise for Australian investors (rounded to one decimal place)? Select one: a. -14.2% b. -10% C. -9.7% d. -9.4% e. None of the above
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