Alternative Investments Q78

0. BMA Hedge Fund and AKD Hedge Fund invest in the same asset class using a similar investment strategy. A potential investor has gathered the following data from the hedge funds:
Characteristic  BMAAKD
Annualized returns 24%16%
Track Record  3 years7 years
Fees 1.25 and 121.75 and 18
Sharpe Ratio  1.51.8

  • Option : A
  • Explanation : First he should research how returns are calculated and if they are comparable before making any decision.
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