1 -35,000 For each of the last six quarters, Managers L and M have provided you with the total dollar value of the funds they manage, along with the quarterly contributions or withdrawals made by their clients. (Note: Contributions are indicated by positive numbers, withdrawals by negative numbers.) MANAGERL MANAGER M Total Funds Contributions/ Total Funds Contributions/ Quarter Under Management Withdrawals Under Management Withdrawals Initial $500,000 $700,000 527,000 12,000 692,000 2 530,000 7,500 663,000 -35,000 555,000 13,500 621,000 -35,000 580,000 6,500 612,000 -35,000 625,000 10,000 625,000 -35,000 For each manager, calculate: a. her money-weighted return; b. her time-weighted return; and, c. estimates of her quarterly performance returns using the Dietz approximation method, assuming contributions/withdrawals are made exactly halfway through the quarter. 3 4 5 1 -35,000 For each of the last six quarters, Managers L and M have provided you with the total dollar value of the funds they manage, along with the quarterly contributions or withdrawals made by their clients. (Note: Contributions are indicated by positive numbers, withdrawals by negative numbers.) MANAGERL MANAGER M Total Funds Contributions/ Total Funds Contributions/ Quarter Under Management Withdrawals Under Management Withdrawals Initial $500,000 $700,000 527,000 12,000 692,000 2 530,000 7,500 663,000 -35,000 555,000 13,500 621,000 -35,000 580,000 6,500 612,000 -35,000 625,000 10,000 625,000 -35,000 For each manager, calculate: a. her money-weighted return; b. her time-weighted return; and, c. estimates of her quarterly performance returns using the Dietz approximation method, assuming contributions/withdrawals are made exactly halfway through the quarter. 3 4 5