Calculate the contribution to total performance from currency, country, and stoc
ID: 2629816 • Letter: C
Question
Calculate the contribution to total performance from currency, country, and stock selection for the manager relative to EAFE in the following table. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar.(Round your answers to 2 decimal places. Do not round intermediate calculations. Input all amounts as positive values. Omit the "%" sign in your response.)
EAFE Weight
Return on
Equity Index
E1/E0
Manager's Weight
Manager's Return
Europe
0.1
12
%
0.8
0.25
17
%
Australasia
0.3
18
1
0.22
14
Far East
0.6
17
1.2
0.53
14
Currency Selection: ?% Profit or Loss?
Country Selection: ?% Profit or Loss?
Stock Selection: ?% Profit or Loss?
EAFE Weight
Return on
Equity Index
E1/E0
Manager's Weight
Manager's Return
Europe
0.1
12
%
0.8
0.25
17
%
Australasia
0.3
18
1
0.22
14
Far East
0.6
17
1.2
0.53
14
Explanation / Answer
Currency Selection
EAFE: [0.1 x (-0.2)] + (.30 X 0) + (.60 X .10) = .1 or 10.0%
Manager: [0.25 X (
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