Alternative Investments Q34

34Which of the following is least likely to be correct about hedge fund valuation?

A
A common practice is to use the average of bid and ask for market quotes and prices.
B
Ask prices are used for long and bid prices are used for shorts.
C
Liquidity discounts are deemed necessary to reflect fair value and are also known as haircuts.

Option : B
Explanation : Bid prices are used for long and ask prices are used for shorts.

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