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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

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 % %

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