You are a Swedish investor owning a portfolio of Swedish and American stocks. Their respective benchmarks are the OMX index and the S&P index. There have been no movements during the
year (cash flows, sales, or purchases, dividends paid). Valuation and performance analysis is done in Swedish krona (SKr). Here are the valuations at the start and the end of the year:
a. What is the total return on the portfolio?
b. Decompose this return into capital gain, yield, and currency contribution.
c. What is the contribution of security selection?
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