Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. EAFE Weight Return on Equity Index E1E0E1E0 Manager's Weight Manager's Return Europe 0.60 18% 1.20 0.70 17% Australasia 0.20 18 0.55 0.10 18 Far East 0.20 23 1.40 0.20 18
Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. EAFE Weight Return on Equity Index E1E0E1E0 Manager's Weight Manager's Return Europe 0.60 18% 1.20 0.70 17% Australasia 0.20 18 0.55 0.10 18 Far East 0.20 23 1.40 0.20 18
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
Problem 22QA
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Question
Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar.
|
EAFE Weight |
|
E1E0E1E0 |
Manager's Weight |
Manager's Return |
Europe |
0.60 |
18% |
1.20 |
0.70 |
17% |
Australasia |
0.20 |
18 |
0.55 |
0.10 |
18 |
Far East |
0.20 |
23 |
1.40 |
0.20 |
18 |
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