ohn Dow is considering investing his money into U.S. hedge funds or mutual funds. He...

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Finance

ohn Dow is considering investing his money into U.S. hedge funds or mutual funds. He is looking at Sharpe ratios and total returns of currently available U.S. hedge funds and mutual funds to make a decision. Why is such a comparison problematic for making a decision?

a. Hedge fund return distributions may be skewed due to the usage of options, while mutual fund returns generally have no such problems b. Such a comparison does not take into account the differences in fees charged by hedge funds and mutual funds c. Such a comparison does not take into account the survivorship bias d. All of the above e. a) and b)

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