Calculate the contribution to total performance from currency, manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Input all amounts as positive values. Europe Australasia Far East Return on EAFE Weight Equity Index Currency Selection Country Selection Stock Selection 0.3 0.2 0.5 10% 16 15 % % % E1 + E0 1.30 0.60 1.10. Manager's Weight 0.50 0.35 0.15 Profit or Loss Manager's Return 11% relative to EAFE relative to EAFE relative to EAFE 21 21

Calculate the contribution to total performance from currency, manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Input all amounts as positive values. Europe Australasia Far East Return on EAFE Weight Equity Index Currency Selection Country Selection Stock Selection 0.3 0.2 0.5 10% 16 15 % % % E1 + E0 1.30 0.60 1.10. Manager's Weight 0.50 0.35 0.15 Profit or Loss Manager's Return 11% relative to EAFE relative to EAFE relative to EAFE 21 21

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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Concept explainers

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.

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.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Input all
amounts as positive values.
Europe
Australasia
Far East
Return on
EAFE Weight Equity Index
Currency Selection
Country Selection
Stock Selection
0.3
0.2
0.5
10%
16.
15
%
%
%
E1 + E0
1.30
0.60
1.10
Manager's
Weight
0.50
0.35
0.15
Profit or Loss
Manager's
Return
relative to EAFE
relative to EAFE
relative to EAFE
11%
21
21

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