$1)$ Hedge funds:

$1.$ are appropriate as a sole investment vehicle for an investor.

$2.$ should only be added to an already well$-$diversified portfolio.

$3.$ pose performance$-$evaluation issues due to nonlinear factor exposures.

$4.$ have down$-$market betas that are typically larger than up$-$market betas.

$5.$ have symmetrical betas.

A$)1$ only

B$)1,3,$ and $4$

C$)2,3,$ and $4$

D$)2$ and $5$