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.