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:

Question Marks

Products or businesses with high growth potential but also high risk due to uncertain market acceptance or competitive positioning, often found in portfolio analyses.

High Market Growth Rates

Periods when a particular market or industry experiences significantly higher than average increases in sales or revenue.

Relative Market Shares

A metric comparing a company's market share to that of its largest competitor, indicating competitiveness in the market.

Stars

In a business context, products or business units that have a large market share in a fast-growing industry, according to the BCG matrix.