estimates of her quarterly performance returns using the Dietz approximation method, assuming…
pros and cons of airline regulation, deregulation, and reregulation
August 7, 2017In a poll, 1,004 adults in a certain country were asked whether
August 7, 2017estimates of her quarterly performance returns using the Dietz approximation method, assuming…
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 | |||
| 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 dollar-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.
