question 1

aske As a financial planner, one of your tasks is to prescribe the allocation of available funds across the money market securities, bonds, and morlgages. Your philosophy is fo take positions in securities that will benefil most from your forecasted changes in economic changes. As a resull of recent events in Malaysia, you expect that in the next month foreign imvestoes will reduce their investrnent in Malaysian Treasury securities and shill most of their funds into okher counlries' securities. You expect that this shirt in funds Will persist for al least a few years. You believe that this single event will have a major eflect on the coonomic factors in Malaysia, such as interest rates, exchange rates and economic growth in the next month. Because the prices of securities in Malaysia are affected by these economic faclors, you must defermine how to revise your prescribed allocation of funds across securities. You are required to answer the following: 1. How will Malaysian interest rates be directly affected by the event tholding other factors equal)? (Mishalini) - (1) - Malaysia interest Rale - Malavia Fconomy Foeacast b. Ouflook (focus-economics.com) - (2) - NA