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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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.

Answered Same DayNov 13, 2021

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

Shakeel answered on Nov 15 2021
144 Votes
The foreign country where investment can be made is Australia.
The current yield on 10-years Austra
lian 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 1.47 AUD...
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