The usual result of adding hedge funds to a portfolio of traditional (stocks and bonds) investments is a decrease in: A. Sharpe ratio. B. standard deviation. C. skewness and kurtosis.
The usual result of adding hedge funds to a portfolio of traditional investments is that: (1) standard deviation will decrease, (2) the Sharpe ratio will increase, and (3) higher-moment exposures such as skewness and kurtosis will increase.
