单选题 Hedge funds that contain infrequently traded assets would most likely exhibit a downward bias with respect to: A. Measured risk but not correlations with conventional equity investments. B. Correlations with conventional equity investments but not measured risk C. Both measured risk and correlations with conventional equity investments.

【正确答案】 C

【答案解析】The presence of infrequently traded assets leads to smoothed pricing that induces a significant downward bias to the measured risk of the assets as well as the correlations of returns with conventional equity and fixed income returns.