In the context of performance evaluations, how would the use of data that incorporates the specified concerns most accurately impact the evaluation outcomes?

Exam-Like

The average Sharpe ratio of hedge funds is understated and the average Sharpe ratio of real estate funds is overstated.

17.9%

The average Sharpe ratio of hedge funds is overstated and the average Sharpe ratio of real estate funds is also overstated.

59.5%

The average volatility of hedge funds is overstated and the average volatility of real estate funds is also overstated.

10.7%

The average volatility of hedge funds is overstated and the average volatility of real estate funds is understated.

11.9%

Financial Risk Manager Part 2