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

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
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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

 

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