'I)•@GARP2020®EXAMPARTIIRiskManagementandInvestmentManagementPearsonCopyright©2019,2018,2017,2016,2015,2014,2013,2012byPearsonEducation,Inc.Allrightsreserved.PearsonCustomEdition.Thiscopyrightcoversmaterialwrittenexpresslyforthisvolumebytheeditor/saswellasthecompilationitself.Itdoesnotcovertheindividualselectionshereinthatfirstappearedelsewhere.PermissiontoreprintthesehasbeenobtainedbyPearsonEducation,Inc.forthiseditiononly.Furtherreproductionbyanymeans,electronicormechanical,includingphotocopyingandrecording,orbyanyinformationstorageorretrievalsystem,mustbearrangedwiththeindividualcopyrightholdersnoted.Gratefulacknowledgmentismadetothefollowingsourcesforpermissiontoreprintmaterialcopyrightedorcontrolledbythem:"FactorTheory,""Factors,""Alpha(andtheLow-RiskAnomaly)"byAndrewAng,reprintedfromAssetManagement:ASystematicApproachtoFactorInvesting(2014),bypermissionofOxfordUniversityPress."PortfolioConstruction,"byRichardGringoldandRonaldKahn,reprintedfromActivePorfolioManagement:AQuantitativeApproachforProducingSuperiorReturnsandControllingRisk,2ndedition,(2000),bypermissionofMcGraw-HillCompanies."PortfolioRisk:AnalyticalMethods"and"VaRandRiskBudgetinginInvestmentManagement"byPhilippeJorion,reprintedfromValueatRisk:TheNewBenchmarkforManagingFinancialRisk,3rdedition,(2007),bypermissionofMcGraw-HillCompanies."RiskMonitoringandPerformanceManagement,"byBobLittermanandtheQuantitativeResourcesGroup,reprintedfromModernInvestmentManagement:AnEquilibriumApproach(2003),bypermissionofJohnWiley&Sons,Inc."PortfolioPerformanceEvaluation,"byZviBodieandAlanJ.Marcus,reprintedfromInvestments,11thedition(2018),bypermissionoftheMcGraw-HillCompanies."HedgeFunds,"byWilliamFungandDavidA.Hsieh,reprintedfromHandbookoftheEconomicsofFinance,Volume28editedbyGeorgeM.Constantinidesetal(2013),bypermissionofNorth-Holland/Elsevier."PerformingDueDiligenceonSpecificManagersandFunds,"byKevinR.Mirabile,reprintedfromHedgeFundInvesting:APracticalApproachtoUnderstandingInvestorMotivation,ManagerProfits,an...
