The term 'herd behaviour' refers to

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BlackTom AI · Accepted Answer

The question asks about the concept of 'herd behaviour' in the context of investments. 
Option a: 'the tendency for different fund managers to adopt the same portfolio mix' This aligns with the idea of herd behavior, where market participants imitate the actions of others rather than acting on independent analysis, leading to similar portfolio choices across managers.
Option b: 'the way in which returns on various investment classes tend to converge' While convergence of returns can occur due to market forces or correlations, it does not describe herd behavior, which is about imitation and shared behavior, not about return patterns themselves.
Option c: 'the way in which funds use fee structures to group customers together' This describes pricing or marketing strategies, not herd behavior. It has to do with how products are sold or priced, not with social or collective decision-making among investors.
Option d: 'None of these' would be correct only if none of the above captured herd behavior, but option a does capture the essence of herd behavior, making 'None of these' inaccurate.

The term 'herd behaviour' refers to

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