Malkiel and Saha (2005) estimate that the survivorship bias for hedge funds equals 4.4%, which is ________ the survivorship bias for mutual funds.

Question

Quizplus · Accepted Answer

Survivorship bias for hedge funds being estimated at 4.4% is much higher than the survivorship bias for mutual funds, indicating that the performance of hedge funds may be overstated due to the exclusion of funds that have failed or underperformed.

Malkiel and Saha (2005) Estimate That the Survivorship Bias for Hedge