Effect of currency movements on partfolio rate of return problem, foreign, domestic, currency

cjs238

I'm confused by the calculation for the Cj part for LOS 47a, which says Rjd = CGj + CFj + Cj, where Cj = e* (1 + CG + CF)

In the first EOC problem in the curriculum they don't use the formula and simply figure out the foreign return in both the domestic and foreign currency and subtract them to get the currency effect. I tried solving it with the formula but didn't get the same answer.

Iginla2011

using the formula, you would get the following: (5.4/6 - 1)*(1+30%+0%) = -13%

wake2000

Thanks. I looked at it several times and made a careless error