To Attract New Clients, Hedge Funds Often Include Past Returns

question 48

Multiple Choice

To attract new clients, hedge funds often include past returns of funds only if they were successful. This is called ________.

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

---

Definitions:

Rate of Decrease

A measure of how quickly a quantity is diminishing over time, often expressed as a percentage or a ratio.

Percentage

A portion or share expressed as a fraction of 100, commonly used to compare differences in quantities.

Percentage

A rate, number, or amount in each hundred, represented by the symbol %.

Base

The fundamental component or main ingredient in a mixture, formula, or system.