CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Which of the following is false regarding hedge fund indices?

A. A hedge fund chooses to which index it will report its performance.
B. A hedge fund typically reports its performance to a few indices.
C. A hedge fund with poor performance may not report its performance to an index.
Correct Answer: B

A. For a hedge fund index, constituents determine the index rather than index providers determining the constituents.
B is false. Frequently one fund reports to only on index.
C. This often causes survivorship bias.

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