- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 2. Alternative Investment Performance and Returns
- Subject 2. Calculating Fees and Returns
CFA Practice Question
Hedge fund managers with higher returns and lower risks are more likely to report returns to database providers. This leads to:
B. Selection bias.
C. Incubation bias.
A. Survivorship bias.
B. Selection bias.
C. Incubation bias.
Correct Answer: B
It is also termed self-reporting bias.
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | A is more about the disappearing of poor-performers |
| ankurwa10 | Selection - to choose, you end up choosing the wrong kind of HFs |