Calculate the contribution to total performance from currency, country, and stock selection for the manager...
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Finance
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.
EAFE Weight
Return on Equity Index
E1/E0
Manager's Weight
Manager's Return
Europe
0.30
20%
0.90
0.35
18%
Australasia
0.10
15
1.00
0.15
20
Far East
0.60
25
1.10
0.50
20
Profit/Loss
Currency Selection
Country Selection
Stock Selection
Answer & Explanation
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