Which is NOT one of the three broad approaches to implementing portfolio management?

Question

Options

• AEvolution
• BBig bang
• CAd hoc
• DOne version of the truth

• A
  8% (3)
• B
  87% (33)
• C
  3% (1)
• D
  3% (1)

Explanation

"Big bang" is the correct answer because it is not one of the three recognized broad approaches to implementing portfolio management. It is a term borrowed from software deployment (releasing everything at once) and does not appear in standard portfolio management frameworks.

The three actual approaches are:

• Evolution (A) - a gradual, phased maturity improvement over time; wrong choice because it is one of the three
• Ad hoc (C) - informal, reactive, lacking structured process; wrong choice because it is one of the three (representing the starting point on the maturity spectrum)
• One version of the truth (D) - a centralized, standardized approach to data and reporting; wrong choice because it is one of the three

Memory tip: Think of the three approaches as a maturity journey - you start Ad hoc, you Evolve, and your goal is One version of the truth. "Big bang" sounds dramatic enough to seem right, but that's exactly why it's the trap - it belongs to deployment jargon, not portfolio management implementation.

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