find the flaw exercise
Where did the ‘skill’ really come from?
Inspect the exposures and identify the hidden risk.
Use Tab and arrow controls · Enter checks CASE FILE · The Alpha DisguiseEXHIBIT APortfolio beta: 1.45 EXHIBIT BGross exposure: 165% EXHIBIT CNo bear-market sample
A fund beat the S&P 500 in a bull market and calls the difference alpha.
One flaw changes the entire conclusion.