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.) Quarter Initial 1 MANAGER L Total Funds Contributions/ Under Management Withdrawals $487,000 503,000 11,000 545,000 9,500 531,000 16,500 555,000 4,500 598,000 13,000 MANAGER M Total Funds Contributions/ Under Management Withdrawals $688,000 693,000 -29,000 655,000 -29,000 638,000 -29,000 611,000 -29,000 624,000 -29,000 2 3 4 5 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): % 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): % % 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 % % 2 % % 3 % % 4 % % 5 % % 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.) Quarter Initial 1 MANAGER L Total Funds Contributions/ Under Management Withdrawals $487,000 503,000 11,000 545,000 9,500 531,000 16,500 555,000 4,500 598,000 13,000 MANAGER M Total Funds Contributions/ Under Management Withdrawals $688,000 693,000 -29,000 655,000 -29,000 638,000 -29,000 611,000 -29,000 624,000 -29,000 2 3 4 5 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): % 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): % % 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 % % 2 % % 3 % % 4 % % 5 % %
