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. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.40 16% 0.90 0.55 17% Australasia 0.50 16 1.30 0.12 20 Far East 0.10 21 1.10 0.33 20
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. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.40 16% 0.90 0.55 17% Australasia 0.50 16 1.30 0.12 20 Far East 0.10 21 1.10 0.33 20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.)
| EAFE Weight | E1/E0 | Manager's Weight | Manager's Return | ||
|---|---|---|---|---|---|
| Europe | 0.40 | 16% | 0.90 | 0.55 | 17% |
| Australasia | 0.50 | 16 | 1.30 | 0.12 | 20 |
| Far East | 0.10 | 21 | 1.10 | 0.33 | 20 |
Transcribed Image Text:Currency Selection
Country Selection
Stock Selection
%
%
%
Profit/Loss
relative to EAFE
relative to EAFE
relative to EAFE
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