"Alternative Investments":High-water marks
学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！
Questions 1:
Which of the following statements concerning the historical record of alternative investments is most likely correct?
A 、The exclusion of returns of funds that have been liquidated leads to an upward bias in index performance.
B 、The use of appraised values instead of market prices leads to an upward bias in volatility.
C 、The inclusion of previous return data for funds that enter the index leads to a downward bias in index performance.
Questions 2:
High-water marks are typically used when calculating the incentive fee on hedge funds. They are most likely used by clients to:
A 、avoid prime brokerage fees.
B、 avoid paying twice for the same performance.
C 、claw back the management fees.
A is correct. The exclusion of returns of funds that have been liquidated is called survivorship bias. It is most likely that only poor performers are eliminated and thus reported returns are artificially inflated.
B is incorrect. The use of appraised values instead of market prices leads to a downward bias in volatility.
C is incorrect. The inclusion of previous return data for funds that enter the index is called backfill bias. It leads to an upward bias in index performance.
B is correct. High-water marks help clients avoid paying twice for the same performance. When a hedge fund’s value drops, the manager will not receive an incentive fee until the value of the fund returns to its previous level.
A is incorrect because high-water marks are not linked to prime brokerage fees.
C is incorrect because management fees are paid irrespective of returns.
成功=时间+方法，自制力是这个等式的保障。世上无天才，高手都是来自刻苦的练习。而人们经常只看到“牛人”闪耀的成绩，其成绩背后无比寂寞的勤奋。小编相信，每天都在勤奋练习，即使是一点点的进步，大家一定可以成为人人称赞的“牛人”。
