a) Charles Lee works for Chartered Semiconductors and participates in a savings plan at work. He began the month with a balance in his account of $35,000. When he got paid on the last date of the month, the company deposited 10% of his gross salary into his savings plan account ($6000 gross salary). The balance in his account at the end of the month is $35,800. What was the rate of return for the month in Charless savings plan?

b)Robert Kim, a Fund Manager is about to upgrade his performance calculation software. Currently, his performance software will only calculate his performance on a quarterly basis. For the year 2007, the quarterly performance numbers are as shown below in Exhibit 4:

(i) Explain how a time-weighted rate of return for the entire year can be approximated. (ii) Determine the approximate time-weighted rate of return.

Quarter 1 6.23 4.55 Quarter 2 Quarter 3 3.21% 0.85% Quarter 4 Exhibit 4: Robert's Historical Quarterly Investment Performance