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Problem 18-09

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.)

	MANAGER L					MANAGER M
	Total Funds		Contributions/			Total Funds		Contributions/
Quarter	Under Management		Withdrawals			Under Management		Withdrawals
Initial	$487,000					$699,000
1	513,000		11,000			688,000		-37,000
2	529,000		5,500			666,000		-37,000
3	542,000		11,500			617,000		-37,000
4	577,000		2,500			631,000		-37,000
5	604,000		17,000			611,000		-37,000

For each manager, calculate:

her money-weighted return. Do not round intermediate calculations. Round your answers to two decimal places.

Money-weighted return (Manager L): %

Money-weighted return (Manager M): %

her time-weighted return. Do not round intermediate calculations. Round your answers to two decimal places.

Time-weighted return (Manager L): %

Time-weighted return (Manager M): %

estimates of her quarterly performance returns using the Dietz approximation method, assuming contributions/withdrawals are made exactly halfway through the quarter. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.

Quarter	Return (Manager L)	Return (Manager M)
1	%	%
2	%	%
3	%	%
4	%	%
5	%	%