Q1 - Describe your favorite performance measure in detail.

Q2 - Define autocorrelation in returns.

a)What does it mean if returns of a hedge fund have positive autocorrelation?

b)What does it mean if returns of a hedge fund have negative autocorrelation?

c)If hedge fund returns have positive autocorrelation, does it mean that markets are inefficient?

Q3 - Describe survivorship bias.How shall you account for it in your calculations of returns?If you do NOT account for survivorship bias, what are the implications for returns, volatility, etc? Be very specific and provide examples.