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 Contributions/ Withdrawals For each manager, calculate: Total Funds Quarter Under Management Contributions/ Withdrawals Total Funds Under Management Initial $503,000 $704,000 1 533,000 14,000 682,000 -31,000 2 527,000 5,500 687,000 -31,000 345 510,000 14,500 650,000 -31,000 567,000 8,500 661,000 -31,000 639,000 10,000 641,000 -31,000 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): 2.89 2.39 % 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) % % 12 % % % % 34 % % % % 5
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 Contributions/ Withdrawals For each manager, calculate: Total Funds Quarter Under Management Contributions/ Withdrawals Total Funds Under Management Initial $503,000 $704,000 1 533,000 14,000 682,000 -31,000 2 527,000 5,500 687,000 -31,000 345 510,000 14,500 650,000 -31,000 567,000 8,500 661,000 -31,000 639,000 10,000 641,000 -31,000 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): 2.89 2.39 % 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) % % 12 % % % % 34 % % % % 5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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
Contributions/
Withdrawals
For each manager, calculate:
Total Funds
Quarter
Under Management
Contributions/
Withdrawals
Total Funds
Under Management
Initial
$503,000
$704,000
1
533,000
14,000
682,000
-31,000
2
527,000
5,500
687,000
-31,000
345
510,000
14,500
650,000
-31,000
567,000
8,500
661,000
-31,000
639,000
10,000
641,000
-31,000
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):
2.89
2.39 %
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)
%
%
12
%
%
%
%
34
%
%
%
%
5
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