| LOS l, (Part 2): Explain the effect of survivorship bias on the reported return and risk measures for a hedge fund database.
Q1. Which of the following statements regarding survivorship bias in hedge funds is most accurate? Survivorship bias tends to:
A) overstate the performance and understate the volatility of hedge funds.
B) overstate both the performance and volatility of hedge funds.
C) understate the performance and overstate the volatility of hedge funds.
Q2. Survivorship bias is acute with hedge fund databases because hedge:
A) fund managers often do not have to comply with performance presentation standards
B) funds experience higher volatility of returns than traditional investments.
C) funds are more highly leveraged than other asset classes.
Q3. Only successful, ongoing hedge funds are included in hedge fund databases. The resulting inflation of reported hedge fund performance can be best described as:
A) asymmetrical returns.
B) survivorship bias.
C) self-selection bias.
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发表于 2009-2-28 17:53
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