You are a portfolio manager based in Australia, considering investing in stocks listed in Malaysia. You believe that companies in Malaysia will enjoy very strong growth in sales over the next three months and that Malaysian stocks will appreciate by 5% over this period. You also believe that the Malaysian ringgit is currently overvalued relative to the AUD and that it will depreciate by 3% over this period. You are prohibited from hedging any currency risk. Based on these two observations: You expect to earn a positive AUD return of around 2% over this period by investing in Malaysian stocks. You expect to earn a negative AUD return of around -2% over this period by investing in Malaysian stocks. O You expect to earn a negative AUD return of around -8% over this period by investing in Malaysian stocks. You expect to earn a positive AUD return of around 8% over this period by investing in Malaysia stocks. O None of the other answers