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 Quarter Initial 1 2 3 4 5 Total Funds Under Management $503,000 533,000 545,000 556,000 561,000 607,000 Contributions/ Withdrawals NM + 2 % 3 For each manager, calculate: a. her money-weighted return. Do not round intermediate calculations. Round your answers to two decimal places. Money-weighted return (Manager L): 4 5 13,000 6,500 14,500 7,500 11,000 % Money-weighted return (Manager M): b. her time-weighted return. Do not round intermediate calculations. Round your answers to two decimal places. Time-weighted return (Manager L): % MANAGER M Time-weighted return (Manager M): % c. 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 % Total Funds Under Management % $716,000 682,000 675,000 629,000 614,000 618,000 % % % Contributions/ Withdrawals -32,000 -32,000 -32,000 -32,000 -32,000 % % % 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 Quarter Initial 1 2 3 4 5 Total Funds Under Management $503,000 533,000 545,000 556,000 561,000 607,000 Contributions/ Withdrawals NM + 2 % 3 For each manager, calculate: a. her money-weighted return. Do not round intermediate calculations. Round your answers to two decimal places. Money-weighted return (Manager L): 4 5 13,000 6,500 14,500 7,500 11,000 % Money-weighted return (Manager M): b. her time-weighted return. Do not round intermediate calculations. Round your answers to two decimal places. Time-weighted return (Manager L): % MANAGER M Time-weighted return (Manager M): % c. 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 % Total Funds Under Management % $716,000 682,000 675,000 629,000 614,000 618,000 % % % Contributions/ Withdrawals -32,000 -32,000 -32,000 -32,000 -32,000 % % %
