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	$515,000					$719,000
1	538,000		11,000			680,000		-41,000
2	544,000		3,500			671,000		-41,000
3	527,000		12,500			623,000		-41,000
4	571,000		1,500			638,000		-41,000
5	610,000		7,000			602,000		-41,000

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	%	%