For each of the past 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 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 c. Estimates of her quarterly performance returns using the Dietz approximation method, assuming that contributions/withdrawals are made exactly halfway through the quarter

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...

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For each of the past 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
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
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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