Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 total of 10 marks): An investor has some Australian and Indian assets and liabilities as follows: AUD 600 000 apartment which is partly

image text in transcribed
Question 4 total of 10 marks): An investor has some Australian and Indian assets and liabilities as follows: AUD 600 000 apartment which is partly financed with a loan AUD 500,000 mortgage loan HAUD 1,000 in her deposit account at the bank INR 1,470,000 in Indian shares. Note the shares are denominated in Indian Rupees (INR), not Australian Dollar (AUD) The current exchange rate is 0.7 USD = 1 AUD The current exchange rate is 70 INR = 1 USD. Note that this exchange rate is not per AUD. It's in INR per USD. Give your answer as a decimal correct to at least 6 decimal places. So for example if your answer is 1.23456789% write 0.0123456789. If your answer is 400,000, write 400000. Do not use percentages and do not write units (m or k) after the number: Question 4a (2 marks: What is the investor's net wealth? State your answer in AUD Answers Question 4b [1 marks: What is the weight of the asset class real estate in the Investor's net wealth Answers Question 40 [1 marks): What is the weight of the asset class debt in the investor's net wealth? Remember that all things that have Characteristics of debt should be included in the asset class debt Answers Question 4d 2 marks: What new INR per AUD exchange rate would cause the investor's wealth to be AUD 150,000? Assume that the shares remain the same value in INR State your final answer INR per AUD. For example, if you thought the answer was 60 INR per AUD. write Bo Answers Question Al 12 marks: resto

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

5th Edition

1567934250, 978-1567934250

More Books

Students also viewed these Finance questions

Question

What is EVA and why is it superior to other performance measures?

Answered: 1 week ago

Question

2.5 Describe a social audit.

Answered: 1 week ago