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 EAFE Weight 0.30 0.10 0.60 Return on Equity Index 20% 15 25 Profit/Loss Currency Selection Country Selection % Loss relative to EAFE % Loss relative to EAFE Stock Selection % Loss relative to EAFE E1/E0 0.90 1.00 1.10 Manager's Weight Manager's Return 0.35 18% 0.15 20 0.50 20

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 EAFE Weight 0.30 0.10 0.60 Return on Equity Index 20% 15 25 Profit/Loss Currency Selection Country Selection % Loss relative to EAFE % Loss relative to EAFE Stock Selection % Loss relative to EAFE E1/E0 0.90 1.00 1.10 Manager's Weight Manager's Return 0.35 18% 0.15 20 0.50 20

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 47E: Match each term in Column A with its related definition in Column B. Column A 1. ____________ Spot...

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1. Calculate the value added by the manager's decisions. 2. Calculate the value added by the manager's country allocation decisions. 3. Calculate the value added from manager's stock selection abilities within countries.
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Compute for the answer and show your solution. 1. The following are annual rates of return for PHILIPPINES government T-bills and Singapore common stock. (10pts) Year 2014 2015 2016 2017 2018 Philippines 063 .081 .076 Singapore .150 .043 374 192 .090 .085 106 Compute the following for the series. a. arithmetic mean rate b. Variance c. Standard variation d. Covariance Given the above data, which is a better investment? Explain using the result of the data.
Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.60 0.20 0.20 % % % Return on Equity Index 17% 15 22 Profit/Loss relative to EAFE relative to EAFE relative to EAFE E₁/E0 0.90 1.30 1.10 Manager's Weight 0.69 0.22 0.09 Manager's Return 20% 17 17
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The stock market data given by the following table. Telmex Mexico World Correlation Coefficients Telmex 1.00 Equity cost Mexico 0.90 1.00 World 0.60 0.75 1.00 % SD (%) 18 15 10 R (%) ? The above table provides the correlations among Telmex, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns (R). The risk-free rate is 6%. 14 12 Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the CAPM paradigm, estimate Telmex's equity cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.)
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Suppose we obtain the following data in dollar terms: Stock market Return (mean) Risk (SD) United States 1.26% per month 4.43% United Kingdom 1.23% per month 5.55% The correlation coefficient between the two markets is 0.58. Suppose that you invest equally, i.e., 50% each, in the two markets. Determine the expected return and standard deviation risk of the resulting international portfolio.
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3. The following graph depicts a macro equilibrium. Answer the questions based on the information in the graph.(a) What is the equilibrium rate of GDP?(b) If full-employment real GDP is $1200, what problem does this economy have?(c) How large is the real GDP gap?