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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
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 | $510,000 | $705,000 | |||||||
1 | 523,000 | 11,000 | 691,000 | -27,000 | |||||
2 | 528,000 | 9,500 | 658,000 | -27,000 | |||||
3 | 571,000 | 12,000 | 637,000 | -27,000 | |||||
4 | 583,000 | 5,500 | 602,000 | -27,000 | |||||
5 | 628,000 | 9,000 | 641,000 | -27,000 |
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 % %
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