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.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.10 0.70 0.20 % Loss % Profit % Profit Return on Equity Index 16% 14 21 Profit/Loss relative to EAFE relative to EAFE relative to EAFE E1/E0 0.60 1.10 1.20 Manager's Weight 0.26 0.15 0.59 Manager's Return 18% 22 22

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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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.)
Europe
Australasia
Far East
Currency Selection
Country Selection
Stock Selection
EAFE Weight
0.10
0.70
0.20
%
Loss
% Profit
% Profit
Return on Equity Index
16%
14
21
Profit/Loss
relative to EAFE
relative to EAFE
relative to EAFE
E1/E0
0.60
1.10
1.20
Manager's Weight
0.26
0.15
0.59
Manager's Return
18%
22
22
Transcribed Image Text: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.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.10 0.70 0.20 % Loss % Profit % Profit Return on Equity Index 16% 14 21 Profit/Loss relative to EAFE relative to EAFE relative to EAFE E1/E0 0.60 1.10 1.20 Manager's Weight 0.26 0.15 0.59 Manager's Return 18% 22 22
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