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.) Return on Equity Index 199 15 Manager 's Weight 0.11 EAFE Weight B1/E0 Manager'a Return 0.20 0.80 Europe Australasia 0.60 1.10 0.40 0.49 Far East 0.20 24 1.00 19 Profit/Loss Currency Selection % relative to EAFE relative to EAFE Country Selection Stock Selection % relative to EAFE 699
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.) Return on Equity Index 199 15 Manager 's Weight 0.11 EAFE Weight B1/E0 Manager'a Return 0.20 0.80 Europe Australasia 0.60 1.10 0.40 0.49 Far East 0.20 24 1.00 19 Profit/Loss Currency Selection % relative to EAFE relative to EAFE Country Selection Stock Selection % relative to EAFE 699
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 36QA
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