Question

The term 'herd behaviour' refers to A. the tendency for different fund managers to adopt the...

The term 'herd behaviour' refers to

A. the tendency for different fund managers to adopt the same portfolio mix

B. the way in which returns on various investment classes tend to converge

C. the way in which funds use fee structures to group customers together

D. none of these

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:-

Herd Behaviour in the financial market refers to the tendency or the behaviour of the investors to copy the others action. Everyone in the stock market reacts in the same way to any information. They do not follow their own decision instead they follow others decision. This decision is more in fund managers because it is easy to imitate the competitors at their level. The fund managers who execute the trade with same broker will herd and also this brokers will pass information to their clients and this disseminate the information into other clients.

Therefore, 'herd behaviour' refers to the tendency for different fund managers to adopt the same portfolio mix.

Hence, the correct option is A.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
9. The major downside of managed investments is the fees that investors must pay. Select one...
9. The major downside of managed investments is the fees that investors must pay. Select one A. True B. False 10. The term​ 'herd behaviour' refers​ to: Select one A. the way in which returns on various investment classes tend to converge B. the way in which funds use fee structures to group customers together C. the tendency for different fund managers to adopt the same portfolio mix D. none of these.
CASE # 1 (Managing without Managers) Just Music, a European commercial music service, is synonymous with...
CASE # 1 (Managing without Managers) Just Music, a European commercial music service, is synonymous with dramatically changing the way consumers access and use music on a day-to-day basis. They have succeeded in moving consumers away from buying music and, instead, moving them towards a model of renting the music they enjoy for a monthly fee. The European music giant, launched in 2008, was developed into the business we know today by European entrepreneur Paul Moon, who was inspired to...
CASE STUDY ON LEADERSHIP/ Aidensfield hospital currently faces major problems with staff, management, general performance and...
CASE STUDY ON LEADERSHIP/ Aidensfield hospital currently faces major problems with staff, management, general performance and service quality. It is conceivable that these problems are related to the ‘leadership’ styles adapted by those in charge. The senior management have proposed some changes within the organisation to hopefully make improvements but making such decisions requires an in-depth understanding of what is going wrong and why. Leadership as a concept is often considered in isolation when in reality, it is coherent with...
Organizing Organizing is an important task of managers. Once the organization’s goals and plans are in...
Organizing Organizing is an important task of managers. Once the organization’s goals and plans are in place, the organizing function sets in motion the process of seeing that those goals and plans are pursued. When managers organize, they’re defining what work needs to get done and creating a structure that enables work activities to be completed efficiently and effectively by organizational members hired to do that work. As Starbucks continues its global expansion and pursues innovative strategic initiatives, managers must...
After reading the following article, how would you summarize it? What conclusions can be made about...
After reading the following article, how would you summarize it? What conclusions can be made about Amazon? Case 12: Amazon.com Inc.: Retailing Giant to High-Tech Player? (Internet Companies) Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July 1994, and sold its first book in July 1995. In May 1997, Amazon (AMZN) completed its initial public offering and its common stock was listed on the NASDAQ Global Select Market. Amazon quickly...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT