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:

Further analysis indicated that the share price of the Greshak Portfolio was $$20\mathrm{.}00$ at the outset of

the measurement period $($i$.$e$.,$ the beginning of Year $1).$Using the original data given in the case study $($including the beginning balance of $500$ shares

worth $$20\mathrm{.}00$ each$),$ now assume that Greshak adds an additional $$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.