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问题如下：

When measuring risk in hedge funds that hold illiquid assets using monthly data, certain biases can create a misleading picture. For example, those hedge funds might have the appearance of low systematic risk. Which of the following represents an appropriate means of correction?

选项：

A.Account for negative serial correlation of returns by first differencing the data when extrapolating risk to longer time horizons.

B.Account for positive serial correlation of returns by aggregating the data.

C.Use regressions with less lags of the market factors and sum the coefficients across lags.

D.Use regressions with additional lags of the market factors and sum the coefficients across lags.

解释：

Artificially low asset class correlations leading to the appearance of low systematic risk is a bias faced by hedge funds with illiquid holdings that use monthly valuation data. One way to correct for this is to use enlarged regressions with additional lags of the market factors and to sum the coefficients across lags.