问题：Based on the information provided in Exhibit 1, the domestic currency value of Dias’s foreign investments most likely:
A.decreased because of changes in the domestic currency value of foreign asset holdings.
B.increased because of changes in the domestic currency value of UK assets but decreased because of changes in the domestic currency value of German assets.
C.increased because of changes in the domestic currency value of foreign asset holdings.
答案：C is correct. The domestic currency value of Dias’s portfolio of foreign assets most likely increased because of changes in the domestic currency value of foreign asset holdings. The domestic currency return of the portfolio of foreign assets is:
RDC = w1(1+RFC,GBP)(1+RFX,GBP) +w2(1+RFC,EUR)(1+RFX,EUR)−1
= 0.659(86,000,000/83,400,000)(4.1025/3.8729) + 0.341(51,000,000/55,000,000)(3.5142/3.0359)
= 0.659(1.0312)(1.0592) + 0.341(0.9273)(1.1575)
= 0.659(1.0923) + 0.341(1.0734)
= 0.0858
The calculations show that the domestic currency value of the portfolio of foreign assets increased because of changes (i.e., increases) in the domestic currency value of UK and German equity investments. Note:
w1=322,999,860/489,974,360=0.659
and
w2=166,974,500/489,974,360=0.341。老师这两个权重是怎么计算出来的？
