Malkiel and Saha(2005)estimate That the Survivorship Bias for Hedge Funds

question 49

Multiple Choice

Malkiel and Saha(2005) estimate that the survivorship bias for hedge funds equals 4.4%,which is __________ than the survivorship bias for mutual funds.

• A) about the same as
• B) much lower
• C) much higher
• D) only slightly lower

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Definitions:

American Put Option

A type of options contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price before or at a specified expiration date.

Market Interest Rates

The prevailing rate of interest available in the marketplace on investments and borrowing.

Exercise Price

The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.