True , False or Uncertain with explanation

5. The returns of venture capital funds are often dominated by successful results from one company because the fund-manager was only able to identify one super-attractive exante investment proposal from the many thousands of proposals evaluated in the process of choosing which companies to fund.

6. Before, during, and after the financial crisis, David Swensen, Warren Buffett, AIG, Citi Bank, Fannie Mae, and the Fed all correctly viewed themselves as suppliers of liquidity to the financial system.

7. If you view the U.S. governmentexcluding the Fedas a gigantic hedge fund, then Deborah Lucas would say that it uses instruments similar to credit default swaps to buy protection against the default of numerous types of debt, but mostly small businesses.

8. Compensation for hedge funds is based on high water marks because (1) hedge funds trade a great deal, (2) market prices are easy to manipulate, and (3) positions are concentrated in a small number of assets.

9. When a large institutional investor wants to liquidate large positions at the same time that other large institutional investors want to do the same thing, side pockets and separate accounts can protect the large investor from fire sale risk.

10. It is economically reasonable for early-stage venture capital funds limit the size of their funds, even though large-cap-stock asset managers do not do so, because the supply of limited partners is much deeper for large-cap-stock funds than for early-stage venture capital funds.

11. Limited partners allow hedge funds to use leverage because limited partners find it difficult to detect hidden carry trades.

12. Warren Buffett believes that it is optimal for Berkshire Hathaway to less debt, more cash, and shorter debt maturities than other similar firms.

13. In trying to rescue the financial system from the financial crisis, the U.S. government increased the amount of debt it insured but completely avoided investing in equity securities.

14. Warren Buffetts and AIGs derivatives strategies were different in that Buffetts success or failure depended only on final outcomes while AIGs success or failure was pathdependent.

15. Target date retirement funds are passively managed.

16. PBO captures economic and financial reasoning while APO captures accounting and actuarial reasoning.