For each of the past six quarters, Managers L and M have provided you with the total doUar 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 under Contributions/ Total Funds under Contributions/ Quarter Management Withdrawals Management Withdrawals Initial $500,000 $700,000 1 527,000 12,000 692,000 - 35,000 2 530,000 7,500 663,000 - 35,000 3 555,000 13,500 621,000 -35,000 4 580,000 6,500 612,000 - 35,000 5 625,000 10,000 625,000 - 35,000 For each manager, calculate: a. Her money-weighted return b. Her time-weighted return c. Estimates of her quarterly performance returns using the Dietz approximation method, assuming that contributions/ withdrawals are made exactly halfway through the quarter
For each of the past six quarters, Managers L and M have provided you with the total
doUar 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 under Contributions/ Total Funds under Contributions/
Quarter Management Withdrawals Management Withdrawals
Initial $500,000 $700,000
1 527,000 12,000 692,000 - 35,000
2 530,000 7,500 663,000 - 35,000
3 555,000 13,500 621,000 -35,000
4 580,000 6,500 612,000 - 35,000
5 625,000 10,000 625,000 - 35,000
For each manager, calculate:
a. Her money-weighted return
b. Her time-weighted return
c. Estimates of her quarterly performance returns using the Dietz approximation method,
assuming that contributions/ withdrawals are made exactly halfway through the quarter
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 5 steps with 12 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)