Which of the following statements are CORRECT? Various refinements to the basic return-based performance assessment models include:
- using prior knowledge for making ex-post adjustments in regression coefficients.
- correcting for serially or auto correlated error terms to draw valid t-test inferences.
- assessing market timing skills of portfolio managers by incorporating up and down market betas into a dummy regression.
- estimating variations in realized portfolio excess returns as a result of variations in the benchmark portfolio returns after controlling for dividend yield and interest rates.
A. II, III and IV.
B. I, II and III.
C. I, II, III and IV.
D. I and II.
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