INVESTMENTS-CONNECT PLUS ACCESS
INVESTMENTS-CONNECT PLUS ACCESS
11th Edition
ISBN: 2810022611546
Author: Bodie
Publisher: MCG
Question
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Chapter 26, Problem 4PS
Summary Introduction

To select:

In the performance evaluation of hedge funds, the most relevant statement for explaining problems of survivorship bias and backfill bias.

Introduction:

Survivorship bias means non-performing securities are excluded and reported which lead to a change in an index.

Backfill bias means performing securities included and reported in the index which leads to change in an index.

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