Consider the example we completed in class measuring a real estate funds one-quarter holding period return. The relevant cash flows were in millions of dollars, as follows:

Beginning equity = $310 Ending equity = $452 Cash distributions = $45, comprised of three $15 payments at the end of each month Cash contribution = $175 paid at quarter-end Assuming period-end cash flow, we calculated a return of 3.87%. Using the timing shown above, we completed a Modified Dietz formula and showed a return of 4.07%.

Leaving everything else constant, what is the funds return if we assume the $175 investor contribution is paid into the fund at the very beginning of the quarter?