Your task is to compute the investment performance of the Walbright Fund for the most recent year. The facts are as follows: 

■ On 1 January, the Walbright Fund had a market value of USD100 million. 

■ During the period 1 January to 30 April, the stocks in the fund generated a capital gain of USD10 million. 

■ On 1 May, the stocks in the fund paid a total dividend of USD2 million. All dividends were reinvested in additional shares. 

■ Because the fund’s performance had been exceptional, institutions invested an additional USD20 million in Walbright on 1 May, raising assets under management to USD132 million (USD100 + USD10 + USD2 + USD20). 

■ On 31 December, Walbright received total dividends of USD2.64 million. The fund’s market value on 31 December, not including the USD2.64 million in dividends, was USD140 million. 

■ The fund made no other interim cash payments during the year.

1. Compute the Walbright Fund’s time-weighted rate of return. 

2. Compute the Walbright Fund’s money-weighted rate of return. 

3. Interpret the differences between the Fund’s time-weighted and money-weighted rates of return.