The following table summarizes the results:
|
Sector
|
Weight |
Local Currency Return |
Security
Selection |
|
Portfolio |
Benchmark |
Portfolio |
Benchmark |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
European Equity |
50% |
75% |
13.50% |
15.00% |
-0.75% |
|
Japanese Equity |
50% |
25% |
12.00% |
8.00% |
2.00% |
|
Total |
100% |
100% |
12.75% |
13.25% |
1.25% |
Column (6) measures the security selection effect as follows:
Security Selection for European Equity = 0.5(13.50-15.00) = -0.75%
Security Selection for Japanese Equity = 0.5(12.00-8.00) = 2.00%
Total security selection effect = -0.75% + 2.00% = 1.25%
