What would be an ideal approach for a hedge fund investor who is concerned about the problem of risk sharing asymmetry between principals and agents within the hedge fund industry?
AFocus on investing in funds for which the fund managers have a good portion of their own wealth invested
BFocus on diversifying among the various niche hedge fund strategies
CFocus on funds with improved operational efficiency and transparent corporate governance
DFocus on large funds from the “foresight-assisted” group
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