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A global equity manager is assigned to select stocks from auniverse of large stocks throughout the world. The manager will beevaluated by comparing her returns to the return on the MSCI WorldMarket Portfolio, but she is free to hold stocks from variouscountries in whatever proportions she finds desirable. Results fora given month are contained in the following table: Country WeightIn MSCI Index Manager’s Weight Manager’s Return in Country Returnof Stock Index for That Country U.K. 0.22 0.44 21 % 13 % Japan 0.350.23 14 14 U.S. 0.38 0.29 10 12 Germany 0.05 0.04 6 13
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