The Manager of Cross Border Uses EAFE as a Benchmark

question 51

Multiple Choice

The manager of Cross Border uses EAFE as a benchmark. Last year's performance for the fund and the benchmark were as follows: $\begin{array}{ccccc}&\text { EAFE } & \text { Return on } & \text { Currency } & \text { Cross } & \text { Manager's } \\&\text { Weight } & \text { Equity } & \text { Aplication } & \text { Border's } & \text { Return } \\&& \text { Index } & E_{1} / E_{0-1} & \text { Weight } &\\ \text { Eur } &0.30&10\%&10\%&0.25&9\%\\ \text { Aus } &0.10&5\%&-10\%&0.25&8\%\\ \text { FE } &0.60&15\%&30\%&0.50&16\%\\\end{array}$
Calculate Cross Border's country selection return contribution.

• A) 12.5%
• B) ?12.5%
• C) 11.25%
• D) ?1.25%
• E) 1.25%

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