55. How can one eliminate the drop in skewness due to hedge funds?

A. Buy out-of-the-money puts on equity index and/or invest in managed futures

B. Buy deep in-the-money puts on equity index and/or invest in managed futures

C. Buy at-the-money puts on equity index and/or invest in managed futures

D. Buy out-of-the-money calls on equity index and/or invest in managed futures

56. What is the optimal number of hedge funds in a portfolio?

A. 2-5

B. 10-20

C. 30-40

D. 40-50

57. Diversifying into hedge funds:

A. one can invest into funds of hedge funds (FoHFs). However, FoHFs seem under-diversified

B. one can invest into funds of hedge funds (FoHFs). However, FoHFs seem over-diversified and the investor essentially has to pay a double layer of fees

C. Naive diversification is worse for HF than Markowitz optimisation.

D. One needs a lot of hedge funds into his portfolio to achieve proper diversification