5. Which of the following best describes the correlation of hedge funds as a whole with traditional asset classes based on studies of hedge fund performance? A. Highly positive B. Slightly positive C. Zero D. Slightly negative 6. A portfolio manager has determined that the hurdle rate for a fund of hedge funds is .0068 (or 0.68%) relative to the S&P 500. Which of the following interpretations of this value is CORRECT? A. The fund of hedge funds has outperformed the S&P 500 by an average rate of 68 basis points per month. B. The funds of hedge funds must earn at least 68 basis points per month to be valuable addition for risk budgeting purposes. C. The fund of hedge funds is expected to earn 68 basis points per month in excess of the risk free rate interest rate. D. The fund of hedge funds has a tracking error relative to the S&P 500 of 68 basis points per month. 7. Which is NOT considered to be part of the investment objective of the hedge fund? A. What markets does the hedge fund manager invest? B. What fees will the hedge fund manager charge? C. What is the hedge fund manager's general investment strategy? D. What is the hedge fund manager's benchmark, if any