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....


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<br>contributions or withdrawals made by their clients. (Note: Contributions are indicated by positive numbers, withdrawals by negative numbers.)<br>MANAGER L<br>MANAGER M<br>Total Funds<br>Contributions/<br>Total Funds<br>Contributions/<br>Quarter<br>Under Management withdrawals<br>Under Management<br>Withdrawals<br>Initial<br>$487,000<br>$699,000<br>1<br>513,000<br>11,000<br>688,000<br>-37,000<br>529,000<br>5,500<br>666,000<br>-37,000<br>542,000<br>11,500<br>617,000<br>-37,000<br>4<br>577,000<br>2,500<br>631,000<br>-37,000<br>5<br>604,000<br>17,000<br>611,000<br>-37,000<br>For each manager, calculate:<br>a. her money-weighted return. Do not round intermediate calculations. Round your answers to two decimal places.<br>Money-weighted return (Manager L):<br>%<br>Money-weighted return (Manager M):<br>%<br>b. her time-weighted return. Do not round intermediate calculations. Round your answers to two decimal places.<br>Time-weighted return (Manager L):<br>%<br>Time-weighted return (Manager M):<br>%<br>c. estimates of her quarterly performance returns using the Dietz approximation method, assuming contributions/withdrawals are made exactly<br>halfway through the quarter. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter<br>negative values, if any.<br>Quarter<br>Return (Manager L) Return (Manager M)<br>1<br>%<br>%<br>%<br>3<br>%<br>4<br>%<br>%<br>5<br>%<br>%<br>

Extracted 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 Total Funds Contributions/ Total Funds Contributions/ Quarter Under Management withdrawals Under Management Withdrawals Initial $487,000 $699,000 1 513,000 11,000 688,000 -37,000 529,000 5,500 666,000 -37,000 542,000 11,500 617,000 -37,000 4 577,000 2,500 631,000 -37,000 5 604,000 17,000 611,000 -37,000 For each manager, calculate: 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): % 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) 1 % % % 3 % 4 % % 5 % %

Jun 06, 2022
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