Question
1. Calculate the contribution to total performance from currency, country, and stock selection for the manager in the following table. All exchange rates are expressed
1. Calculate the contribution to total performance from currency, country, and stock selection for the manager in the following table. All exchange rates are expressed as units of foreign currency that can be purchased with one U.S. dollar. (Input all values as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)
| EAFE Weight | Return on Equity Index | E1/E0 | Manager's Weight | Manager's Return | ||||||
Europe | .30 |
| 20 | % |
| 0.9 | .35 |
| 18 | % |
|
Australia | .10 |
| 15 |
|
| 1.0 | .15 |
| 20 |
|
|
Far East | .60 |
| 25 |
|
| 1.1 | .50 |
| 20 |
|
|
| Contribution | Profit/Loss |
Currency selection | ||
Country selection | ||
Stock selection | ||
|
2. If the current exchange rate is $1.75/
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