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A pension fund manager is planning to invest a portion of the fund's portfolio in hedge funds. The manager is concerned about the potential asymmetry in risk sharing that may occur with hedge fund investments. What action should the pension fund manager take to mitigate this risk?
A
Allocate the money across several different hedge fund strategies to diversify away the asymmetry in risk sharing.
B
Choose a reputable hedge fund manager that manages investments for other major pension funds.
C
Ensure that the hedge fund managers have a sizable amount of their own wealth invested in their fund.
D
Require the hedge fund to provide a daily position report to better monitor the potential asymmetry in risk sharing.