The Most Common Manner of Evaluating Portfolio Managers Is a Peer

question 44

True/False

The most common manner of evaluating portfolio managers is a peer group comparison.

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Definitions:

Group Pressures

Different forms of influence that a group may exert on individual members to conform to certain behaviors or beliefs.

Scalar Chain Principle

A concept in organizational theory that suggests a clear line of authority from the top management to the lowest ranks.

Hierarchical Structure

An organizational structure where entities are ranked one above the other according to authority or status.

Managerial Overrides

When a manager or leader bypasses existing procedures, policies, or systems, often to make a decision or take direct action.