To Attract New Clients Hedge Funds Often Select Reporting Periods

question 35

Multiple Choice

To attract new clients hedge funds often select reporting periods which show abnormally high returns.This is called __________.

• A) long/short bias
• B) survivorship bias
• C) backfill bias
• D) incentive bias

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Definitions:

Misinterpreting Internal Cues

Incorrectly understanding or responding to physical or emotional sensations that originate within oneself.

Anticipate Needs

The ability to predict or foresee the requirements or needs of a situation or individual before they are explicitly expressed.

Alexithymia

A personality trait characterized by difficulty in identifying, describing, and processing one's own emotional states.

Descriptive Labels

Tags or terms used to describe characteristics or aspects of objects, people, or phenomena, often simplifying complex information.