The Manager of Quantitative International Fund Uses EAFE as a Benchmark

question 34

Multiple Choice

The manager of Quantitative International Fund uses EAFE as a benchmark. Last year's performance for the fund and the benchmark were as follows: $\begin{array}{c}\begin{array}{lll} \text { } \\ \text { } \\ \text { } \\ \text { Eur } \\ \text {Aus } \\ \text {FE } \\\end{array}\begin{array}{c} \text { } \\ \text { } \\ \text { EAFE Welght } \\ \text { 0.30 } \\ \text { 0.10} \\ \text { 0.60} \\\end{array}\begin{array}{c} \text { } \\ \text { Return on } \\ \text {Equity Index } \\10\%\\5\%\\15\%\end{array}\begin{array}{c} \text {Currency } \\ \text {Aplication } \\ E_{1} / E_{0.1} \\10\%\\-10\%\\30\%\end{array}\begin{array}{c} \text { } \\ \text { Quantitative's } \\ \text { Welght} \\0.25\\0.25\\0.50\end{array}\begin{array}{c} \text { } \\ \text { } \\ \text {Manager's Return } \\9\%\\8\%\\16\%\end{array}\end{array}$
Calculate Quantitative's country selection return contribution.

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

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The risk that a company will be unable to meet its debt obligations and forced to seek protection under bankruptcy laws.

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