The Manager of Quantitative International Fund Uses EAFE as a Benchmark

question 48

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 stock selection return contribution.

• A) 1.0%.
• B) 1.0%
• C) 3.0%
• D) 0.25%

Identify the concept and implications of the facial-feedback hypothesis.

Understand social and cultural guidelines that regulate the expression of emotions (display rules).

Recognize the concept of social referencing and its impact on behavior and emotion.

Assess how emotional expressions and reactions vary across different cultures.

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Definitions:

Rate of Return

Rate of Return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Investor

An individual or entity that commits capital with the expectation of receiving financial returns.

Economic Value

Refers to the value a good or service has in the context of its ability to generate income or utility.

Interest

The cost of borrowing money or the return on investments, usually expressed as a percentage of the amount lent, deposited, or invested.