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 stock selection return contribution.
A) 1.0%
B) −1.0%
C) 3.0%
D) 0.25%

Question

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 stock selection return contribution.
A) 1.0% 
B) −1.0% 
C) 3.0% 
D) 0.25%

Quizplus · Accepted Answer

(9% − 10%).25 + (8% − 5%).25 + (16% − 15%).50 = 1.00%.

The Manager of Quantitative International Fund Uses EAFE as a Benchmark