EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Question
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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