Just for a quick revision. Have a couple of quick questions if anyone can help:
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Survivorship Bias : Returns are overstated (Only the returns of the historical surviving funds are shown) - Popular with Hedge Funds
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Stale Price Bias : Correlation (in absolute value) is understated whereas measured standard deviation can be lower/higher - Popular with Hedge Funds
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Backfill Bias : Returns are overstated (Past non-performing funds added on Manager’s discretion) - Popular with Hedge Funds
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Appraisal/Smoothed Data : Volatility and correlation (in absolute value) with rest of the portfolio is understated - Popular with Real Estate
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High Frequency Data : Correlation (in absolute value) with rest of the portfolio is understated.
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Vintage Year Effect Bias : Comparing deals closed in the same year for greater consistency can lead to bias if overweight is given on specific years with positive performance - Popular with Private Equity Funds
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Data Mining Bias : Repeatedly drilling information until an analyst finds some statistical significance just by chance - Popular Analyst Bias
My questions are:
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In which type of investment vehicles are the probabilities of High frequency data more common?
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I am a bit confused between Time Period Bias and Regime Change. Can someone explain the difference between the two? Can both of them take place simultaneously?