Fact Pattern: You are currently working as a portfolio analyst with a local investment management firm. One of your functions is to prepare summaries of portfolio performance for the firm's clients. This performance analysis includes not only returns achieved, but comparisons with the market and measures of risk exposure. One of the portfolios you are asked to analyze is called the Greshak Portfolio. Based on your research, the following information was collected for the prior six (6) years: Cash Ending Share Dividends S&P500 Year per Share Price Return 1 $0.60 $20.50 12.0% 2 2.00 22.00 17.0% 3 1.00 21.00 2.0% 4 2.00 22.00 -3.0% 5 2.50 25.00 14.0% 6 2.00 28.00 9.0% Further analysis indicated that the share price of the Greshak Portfolio was $20.00 at the outset of the measurement period (i.e., the beginning of Year 1). 6. Using the original data given in the case study (including the beginning balance of 500 shares worth $20.00 each), now assume that Greshak adds an additional $2,000 at the beginning of each year to the portfolio. What would the value of the portfolio be at the end of the six year period using both a time-weighted and a dollar-weighted calculation method? Assume all dividends were reinvested in the Portfolio in the year received at year-end values. How do these return metrics compare to the returns calculated above? Explain. Fact Pattern: You are currently working as a portfolio analyst with a local investment management firm. One of your functions is to prepare summaries of portfolio performance for the firm's clients. This performance analysis includes not only returns achieved, but comparisons with the market and measures of risk exposure. One of the portfolios you are asked to analyze is called the Greshak Portfolio. Based on your research, the following information was collected for the prior six (6) years: Cash Ending Share Dividends S&P500 Year per Share Price Return 1 $0.60 $20.50 12.0% 2 2.00 22.00 17.0% 3 1.00 21.00 2.0% 4 2.00 22.00 -3.0% 5 2.50 25.00 14.0% 6 2.00 28.00 9.0% Further analysis indicated that the share price of the Greshak Portfolio was $20.00 at the outset of the measurement period (i.e., the beginning of Year 1). 6. Using the original data given in the case study (including the beginning balance of 500 shares worth $20.00 each), now assume that Greshak adds an additional $2,000 at the beginning of each year to the portfolio. What would the value of the portfolio be at the end of the six year period using both a time-weighted and a dollar-weighted calculation method? Assume all dividends were reinvested in the Portfolio in the year received at year-end values. How do these return metrics compare to the returns calculated above? Explain