QUESTIONS 109 THROUGH 114 RELATE TO ALTERNATIVE INVESTMENTS

111. Which of the following statements regarding biases in hedge fund performance in hedge fund databases is least likely correct? A. Only hedge fund managers with good track records enter the database, creating a positive bias. B. The correlations between asset class returns are artificially low when underlying assets trade infrequently. C. Hedge fund database administrators decide which funds to include in the database to overcome self-selection bias.