For each of the last six quarters, Managers

For each of the last six quarters, Managers

10.       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 withdra- wals made by their clients. (Note: Contributions are indicated by positive numbers, with- drawals by negative numbers.)

 

MANAGER L                                                                             MANAGER M

 

 

Quarter

Total Funds

Under Management

Contributions/ Withdrawals

Total Funds

Under Management

Contributions/ 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; and,

c.    estimates of her quarterly performance returns using the Dietz approximation method, assuming contributions/withdrawals are made exactly halfway through the    quarter