A risk analyst at an investment bank is conducting performance analyses of hedge funds and real estate funds. The analyst notes the following two issues regarding the funds' annual performance data:

• Whenever a hedge fund stops reporting its performance, it is removed from the database of hedge funds.
• Assets owned by the real estate funds are valued only once a year due to infrequent trading.

Which of the following best describes the impacts of using the data with the aforementioned issues on the results of the performance analyses?