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.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.10 0.20 0.70 % % % Return on Equity Index 18% 14 23 Profit/Loss relative to EAFE relative to EAFE relative to EAFE E₁/E 0.70 1.05 1.30 Manager's Weight 0.20 0.40 0.40 Manager's Return 20% 15 15
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.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.10 0.20 0.70 % % % Return on Equity Index 18% 14 23 Profit/Loss relative to EAFE relative to EAFE relative to EAFE E₁/E 0.70 1.05 1.30 Manager's Weight 0.20 0.40 0.40 Manager's Return 20% 15 15
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
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.)
Europe
Australasia
Far East
Currency Selection
Country Selection
Stock Selection
EAFE Weight
0.10
0.20
0.70
%
%
%
Return on Equity Index
18%
14
23
Profit/Loss
relative to EAFE
relative to EAFE
relative to EAFE
E1/E0
0.70
1.05
1.30
Manager's Weight
0.20
0.40
0.40
Manager's Return
20%
15
15
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