单选题

Compared to investment in a single hedge fund and a fund of fund, the latter will most likely result in a decrease in（）。

A、 diversification.
B、 expected return.
C、 management fees.

【正确答案】 B

【答案解析】

Compared to investing in a single hedge fund, the increased diversification resulting from an investment in a fund of funds reduces risk but also reduces expected return.