1) I would skip the base & counter BS, and just think of it as a stock price target. Find the expected foreign currency change based on the rates they give you. This is your target/expectation. Then look at int rate differential and say oh, it would go up or down by this much, say 5%, but i expect the currency to change by 7%, so the difference of 2% means if we are correct, the investing in that currency has the potential to increase returns by 2%.
2) Just know the differences between those. There are a couple similarities like "handle with care/prudence etc...". But the differences are more important. |