According to a Model That Was Estimated Using Monthly Excess

question 59

Multiple Choice

According to a model that was estimated using monthly excess returns over a 5 year period, ending in October of 2014, average returns of equity hedge funds are ________ the S&P 500 Index.

• A) equal to
• B) considerably higher than
• C) slightly lower than
• D) slightly higher than

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Definitions:

Revaluation

The process of adjusting the book value of an asset or liability to reflect its current fair market value.

Prospective Depreciation

Depreciation calculated from the current period forward, taking into account changes in asset value or estimated useful life.

Economic Benefits

Future returns or advantages from owning an asset or from a transaction.

Property, Plant and Equipment

Tangible assets that are held for use in the production or supply of goods and services, rental to others, or administrative purposes and are expected to be used during more than one financial period.