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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:

  1. 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): %

  2. 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): %

  3. 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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