Diversification of Judgment Where Clients Will Split Their Assets Among

question 8

Multiple Choice

Diversification of judgment where clients will split their assets among a number of mangers is done in order to avoid

• A) the random errors in judgment by individual managers
• B) being excessively exposed to the possible poor performance of a particular investment style
• C) serious harm inflicted by managers as a group
• D) serious harm by the investment decisions of one or two managers.

---

Definitions:

Large Organizations

Entities characterized by complex structures and large scale, often involving multiple layers of bureaucracy and a wide range of functions and activities.

Coordinating Mechanism

Systems or processes implemented to ensure different parts of an organization work together efficiently towards common goals.

Formal Hierarchy

The structured and clear division of authority and responsibility in an organization, usually depicted in an organizational chart.

Front-Line Workers

Employees who are directly involved with the production of goods or provision of services, often interacting with customers or clients.