This is the data that is needed to answer this question.

		cash ($)	stocks ($)	total ($)	Russell 3000 with div.
	Client flow	0
31-Dec-11	10000	412	9588	10000	3449.92
30-Jan-12	0	412	11852	12264	3571.83
28-Feb-12	0	412	17134	17546	3732.76
31-Mar-12	0	412	16904	17316	3866.13
30-Apr-12	0	412	15522	15934	3810.91
31-May-12	0	412	13842	14254	3638.04
30-Jun-12	0	412	16094	16506	3728.72
31-Jul-12	0	412	14276	14688	3769.23
31-Aug-12	0	412	15416	15828	3850.65
30-Sep-12	0	412	15552	15964	3955.86
31-Oct-12	0	412	17144	17556	3878.72
30-Nov-12	0	412	13434	13846	3874.14
31-Dec-12	10000	1854	22322	24176	3956.65
30-Jan-13	0	1854	24667	26521	4179.75
28-Feb-13	0	1854	24168	26022	4151.61
31-Mar-13	0	1854	25818	27672	4370.52
30-Apr-13	0	1854	26986	28840	4452.47
31-May-13	0	1854	27188	29042	4648.17
30-Jun-13	0	1854	25345	27199	4543.36
31-Jul-13	0	1854	26645	28499	4752.44
31-Aug-13	0	2945	25425	28370	4646.54
30-Sep-13	0	2945	31421	34366	4799.28
31-Oct-13	0	2945	31512	34457	5024.42
30-Nov-13	0	2965	33116	36081	5131.71
31-Dec-13	0	2965	28093	31058	5262.98
31-Jan-14	0	2965	22854	25819	5105.86
28-Feb-14	0	2990	26271	29261	5323.05
31-Mar-14	0	2990	27417	30407	5388.41
30-Apr-14	0	2990	30341	33331	5349.34
31-May-14	0	3015	29741	32756	5516.72
30-Jun-14	0	3015	28898	31913	5650.94
31-Jul-14	0	3015	27564	30579	5669.33
31-Aug-14	0	3040	26872	29912	5774.29
30-Sep-14	0	3040	23316	26356	5775.62

The second column has the cash flows from clients. Assume such cash flows occur just before the end of each month. Note the fund is created on Dec 31 2011 with a cash inflow of 10,000. The last column has a Total Return Index for the Russell 3000.

a. What is the dollar-weighted average return of the fund? (monthly and annualized)

b. What is the time-weighted average return of the fund? (monthly and annualized)

c. Which one, a) or b), more accurately measures the performance of fund managers? Why?

d. What is the Sharpe Ratio of fund (monthly and annualized)?