2015 Mock - Q19 (Alternatives)

B & C are the more correct answers, but the fact that A is the incorrect answer leads me to believe that there is not as much survivorship bias in private equity. Is that true? I would think that there’s a decent element of survivorship bias in PE indices, but I don’t see anything in the text proving or disproving that.



I hated this question.

“least-likely” by process of elimination…

The survivorship bias is minor for event-driven and PE.

Also minor for FoFs.

Survivorship bias most likely relevant for hedge funds and managed futures. Not for other alternative investments?!

Have you seen anything in the CFAI text that says that?