Hedge funds

I$)$ are appropriate as a sole investment vehicle for an investor.

II$)$ should only be added to an already well$-$diversified portfolio.

III$)$ pose performance$-$evaluation issues due to nonlinear factor exposures.

IV$)$ have down$-$market betas that are typically larger than up$-$market betas.

V$)$ have symmetrical betas.

II$,$ III, and IV

I only

I, III, and V

II and V

I, III, and IV