The term 'herd behaviour' refers to

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BlackTom AI · Accepted Answer

The question asks about the meaning of the term 'herd behaviour' in a financial context. 
Option a: 'None of these' would only be correct if all other statements were false, but in this case there is a plausible correct definition among the options, so this is unlikely to be the right choice.
Option b: 'the way in which returns on various investment classes tend to converge' describes convergence of performance across classes, which is more about correlations or diversification effects rather than herd behaviour among fund managers. It is not the standard definition of herd behaviour.
Option c: 'the way in which funds use fee structures to group customers together' refers to pricing or segmentation practices, not to collective imitation by fund managers. This is about marketing or pricing strategy, not herd behaviour.
Option d: 'the tendency for different fund managers to adopt the same portfolio mix' directly captures the essence of herd behaviour in finance, where managers imitate peers or follow popular market trends, leading to similar asset allocations.
In summary, the only option that aligns with the sociological/behavioral concept of herd behaviour in investing is option d, while the others describe phenomena that are distinct from herd-like imitation among fund managers.

The term 'herd behaviour' refers to

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