Question 2 This question has two parts: (Total 30 marks) 1. Would exchange rate changes always increase the risk of foreign investment? (Word max:150 words) (10 marks) 2. A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. The results for a given month are shown in the following table. 1) What was the contribution by her country allocation decisions to relative performance? (10 marks) 2) What was the contribution of her stock selection ability within countries