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%

---

Definitions:

Limited Information

Situations where the data or knowledge available is insufficient or incomplete.

Risk Propensity

The inclination or tendency of an individual or organization to take risks or engage in behaviors with uncertain outcomes.

Anticipated Outcomes

The expected results or consequences of an action or decision, based on predictive analysis or foresight.

Bounded Rationality

A concept that decision-makers are limited by their information, cognitive limitations, and time constraints when making choices.