The Manager of Quantitative International Fund Uses EAFE as a Benchmark

question 1

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:

Calculate Quantitative's currency selection return contribution.

• A) +20%
• B) −5%
• C) +15%
• D) +5%
• E) −10%

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Definitions:

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables.

Regression Line

A line plotted through the scatter plot of data points that best expresses the relationship between those points, typically used in linear regression.

Coefficient Of Correlation

A numerical measure that indicates the strength and direction of a linear relationship between two variables.

Confidence Interval Estimate

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.