Free Practice Question
CR · Critical Reasoning
sub-505
Conclusion
According to mutual fund sales experts, a successful year for a stock fund should result not only in increased investor dollars flowing into the fund, but also in increased investor dollars flowing into other mutual stock funds offered by the same company. However, while last year the Grafton Mutual Company’s “Growth Stock Fund” beat average market returns by a factor of two and recorded substantial new investment, the other stock funds offered by Grafton did not report any increase whatsoever.
Which of the following conclusions can properly be drawn from the statements above?
Which of the following conclusions can properly be drawn from the statements above?
Answer Choices
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When one of the mutual funds offered by a company beats average market returns, the other mutual funds offered by that company will beat average market returns.
B
The mutual fund sales experts neglected to consider bond funds in formulating their theory.
C
The performance of the Grafton “Growth Stock Fund” was a result of a wave of mergers and acquisitions that year.
D
Investors currently dislike all stock mutual funds because of market volatility.
E
The success of one mutual fund is not the only factor affecting whether investors will invest in other mutual funds run by the same company.\n
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Difficulty
sub-505
Type
CR