Statement: You are an Australian investor, and are considering Hong-Kong investments. All else equal, an increase in the nominal AUD/HKD exchange rate will lead to an increase in the AUDdenominated value of your Hong Kong investment. This statement is: correct incorrect, because based on the quote convention, the investment's value would decrease in AUD terms incorrect, because the nominal AUD value of the foreign investments will depend on movements in the Australlan inflation rate