Expected returns of illiquid alternative assets are often overstated (and volatilities understated) due to measurement biases such as survivorship bias, selection bias, and infrequent trading (appraisal-based pricing). Option A is incorrect because less liquid corporate bonds have higher expected returns to compensate for the illiquidity risk premium. Option C is incorrect because even US Treasuries exhibit illiquidity premiums (e.g., the yield spread between highly liquid on-the-run and less liquid off-the-run Treasuries). Option D is incorrect because hedge funds that place restrictions (lock-ups) typically invest in less liquid assets and earn an illiquidity premium, thereby exhibiting higher returns than those without restrictions.