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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Definitions:

Occipital

Pertaining to the occipital lobe, a region of the brain located at the back of the head that is responsible for processing visual information.

Cerebral Cortex

The brain's outermost layer responsible for higher-order brain functions such as sensory perception, cognition, and motor control.

Facial Muscle Movements

Contractions and relaxations of muscles in the face, responsible for creating facial expressions.

Frontal

Pertaining to the front part of the brain, involved in decision making, problem solving, and controlling behavior.