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 $513,000 — $721,000 — 1 530,000 10,000 697,000 -34,000 2 540,000 5,500 652,000 -34,000 3 564,000 10,500 633,000 -34,000 4 591,000 3,500 618,000 -34,000 5 605,000 11,000 605,000 -34,000 For each manager, calculate: 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): % 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): % 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 1.36% % 2 .85% % 3 2.5% % 4 4.17% % 5 .51% %
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 $513,000 — $721,000 — 1 530,000 10,000 697,000 -34,000 2 540,000 5,500 652,000 -34,000 3 564,000 10,500 633,000 -34,000 4 591,000 3,500 618,000 -34,000 5 605,000 11,000 605,000 -34,000 For each manager, calculate: 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): % 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): % 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 1.36% % 2 .85% % 3 2.5% % 4 4.17% % 5 .51% %
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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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 | $513,000 | — | $721,000 | — |
| 1 | 530,000 | 10,000 | 697,000 | -34,000 |
| 2 | 540,000 | 5,500 | 652,000 | -34,000 |
| 3 | 564,000 | 10,500 | 633,000 | -34,000 |
| 4 | 591,000 | 3,500 | 618,000 | -34,000 |
| 5 | 605,000 | 11,000 | 605,000 | -34,000 |
For each manager, calculate:
- 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): %
- 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): %
- 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 1.36% % 2 .85% % 3 2.5% % 4 4.17% % 5 .51% %
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