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
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