24-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter24TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.HedgefundsI)areappropriateasasoleinvestmentvehicleforaninvestor.II)shouldonlybeaddedtoanalreadywell-diversifiedportfolio.III)poseperformance-evaluationissuesduetononlinearfactorexposures.IV)havedown-marketbetasthataretypicallylargerthanup-marketbetas.V)havesymmetricalbetas.A.IonlyB.IIandVC.I,III,andIVD.II,III,andIVE.I,III,andV2.Mutualfundsshow____________evidenceofserialcorrelation,andhedgefundsshow____________evidenceofserialcorrelation.A.almostno;almostnoB.almostno;substantialC.substantial;substantialD.substantial;almostnoE.modest;modest3.ThecomparisonuniverseisA.aconceptfoundonlyinastronomy.B.thesetofallmutualfundsintheworld.C.thesetofallmutualfundsintheU.S.D.asetofmutualfundswithsimilarriskcharacteristicstoyourmutualfund.E.Noneoftheoptionsarecorrect.4.ThecomparisonuniverseisnotA.aconceptfoundonlyinastronomy.B.thesetofallmutualfundsintheworld.C.thesetofallmutualfundsintheU.S.D.asetofmutualfundswithsimilarriskcharacteristicstoyourmutualfund.E.aconceptfoundonlyinastronomy,thesetofallmutualfundsintheworld,orthesetofallmutualfundsintheU.S.5.__________developedapopularmethodforrisk-adjustedperformanceevaluationofmutualfunds.A.EugeneFamaB.MichaelJensenC.WilliamSharpeD.JackTreynorE.MichaelJensen,WilliamSharpe,andJackTreynor6.Henriksson(1984)foundthat,onaverage,betasoffunds__________duringmarketadvances.A.increasedverysignificantlyB.increasedslightlyC.decreasedslightlyD.decreasedverysignificantlyE.didnotchange7.MostprofessionallymanagedequityfundsgenerallyA.outperformtheS&P500Indexonbothrawandrisk-adjustedreturnmeasures.B.underperformtheS&P500Indexonbothrawandrisk-adjustedreturnmeasures.C.outperformtheS&P500IndexonrawreturnmeasuresandunderperformtheS&P500Indexonrisk-adjustedreturnmeasures.24-2Copyright...
