Performance, risk and measurement

The typical hedge fund investor is, like any other investor, risk-averse. There will be a preference for high returns but a dislike of the risk related to investment. All risk and performance risk measures attempt to satisfy the investor's need to be informed about the returns and about the related risks. Some measures, like return analysis, focus on the return component. Others, such as extreme risk analysis, try to capture the riskiness of the hedge fund investment. Risk-adjusted performance...

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