14. The structure of this discussion is taken from Brian D. Singer and Denis S. Karnosky, The General Framework for Global Investment Management and Performance Attribution (Charlottesville, VA: The Research Foundation of the Institute of Chartered Financial Analysts, 1994). The notation used is consistent with that of the authors.

15. The relationship in Eq. (53–1) is approximate because bond market and currency returns of a foreign investment are more accurately expressed as the compounded gain of the two components: (1 + r_i) × (1 + e_$,i) − 1.