Hedge Funds Report Average Returns in December That Are Higher

Hedge funds report average returns in December that are higher than their average returns in other months.This phenomenon __________.
I.is called the Santa effect
II.often results from over generous valuation of illiquid assets
III.appears stronger for lower-liquidity funds
IV.can be explained by managers' attempts to inflate assets to collect higher performance bonuses

A) I only
B) I and II only
C) I, II, and III only
D) I, II, III, and IV

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