Financial Risk Manager Part 2
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Ultimate access to all questions.
In the early 2000s, the hedge fund sector experienced a significant shift with the rise of institutional investors becoming the primary group of investors. Which of the following statements accurately reflects this trend?
A
Institutional investors have uniform expectations,which caused strategy benchmarking based on peer group alphas to become more effective.
B
Institutional investors allocated their investments evenly among small, medium, and large hedge funds, which decreased the concentration of AUM in the hedge fund industry.
C
Some hedge funds started to pursue more conservative strategies and hedge fund indices started to generate lower returns than the S&P 500 Index.
D
Some hedge funds changed their strategies, but the volatility of hedge fund index returns continued to be lower than that of the S&P 50o Index returns.