Cash Management [WLO: 3] [CLOs: 4, 5] You are now aware of the importance of building a...

Question

Cash Management [WLO: 3] [CLOs: 4, 5]    You are now aware of the importance of building a diversified  portfolio to include foreign securities. One aspect of your  international portfolio should be cash. Let’s assume you want to invest  in a foreign country for 1 year. Go to Bloomberg(Links to an external site.) (http://www.bloomberg.com) and  select the “Markets” section. Then select “Rates and Bonds” and click  on a country to review its interest rates. Select a country to invest in  for one year. Describe in 200 – 300 words why you chose that country  and your expected yield for the next year. Be sure to respond to at  least two of your classmates’ postings.

Shakeel · Accepted Answer

The foreign country where investment can be made is Australia.
The current yield on 10-years Australian bond is 1.15%.
Australia is one of the developed countries having strong economical base and good growth rate. In 2018, Australia became the country with the largest median wealth per adult. Its rank is 14th on GDP size and 10th on GDP per capita. According to World Bank’s 2018 report, the annual GDP growth rate of Australia is 2.18% and it is expected to rise further in future. 
Now, the current exchange rate between USD and AUD is 1.

Cash Management [WLO: 3] [CLOs: 4, 5] You are now aware of the importance of building a diversified portfolio to include foreign securities. One aspect of your international portfolio should be cash....

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