EAFE Weight Return on Equity index Currency appreciationE1/E0-1 Managers Weight Managers Return Europe 0.3 20% -20% 0.25 18% Australia 0.1 15% 10% 0.20 20% Far east 0.6 25% 0 0.55 30% All exchange rates are expressed as units of foreign currency that can be purchased with one U.S. dollar. Answer the following about decomposing the manager's performance.What is the difference in return of the manager's portfolio due to country selection?
EAFE Weight Return on Equity index Currency appreciationE1/E0-1 Managers Weight Managers Return Europe 0.3 20% -20% 0.25 18% Australia 0.1 15% 10% 0.20 20% Far east 0.6 25% 0 0.55 30% All exchange rates are expressed as units of foreign currency that can be purchased with one U.S. dollar. Answer the following about decomposing the manager's performance.What is the difference in return of the manager's portfolio due to country selection?
Chapter18: International Finance
Section: Chapter Questions
Problem 4.7P
Related questions
Question
EAFE Weight | Return on Equity index | Currency appreciationE1/E0-1 | Managers Weight | Managers Return | |
Europe | 0.3 | 20% | -20% | 0.25 | 18% |
Australia | 0.1 | 15% | 10% | 0.20 | 20% |
Far east | 0.6 | 25% | 0 | 0.55 | 30% |
All exchange rates are expressed as units of foreign currency that can be purchased with one U.S. dollar. Answer the following about decomposing the manager's performance.What is the difference in return of the manager's portfolio due to country selection?
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