Question: You found a public database for hedge fund returns and are eager to do some data analyses on hedge funds in general using the database.

You found a public database for hedge fund returns and are

You found a public database for hedge fund returns and are eager to do some data analyses on hedge funds in general using the database. Your colleague found out that the hedge funds in the database were under no pressure to report their performance to anyone outside the funds. Based on her finding, she argues that the returns in the public data are likely to be biased upward. Would you agree? Why or why not? Briefly explain

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