In March 2025, Apex Clearing's FRM Part II study group reviews a live risk case on Hedge fund due diligence. The file includes a USD 35 million exposure, a 113 basis-point stress, 7 reporting periods of mixed data, and a management request for a defensible exam-style conclusion. a fund reports smooth monthly returns, refuses position transparency, uses a small related-party auditor, and has one person controlling operations and trading. Which response is most appropriate?
