Which of the following conclusions can be drawn most directly from the

QUESTION

Which of the following conclusions can be drawn most directly from the prompt?

A) Female investors always use better judgment than male investors.
B) Handling IPOs can be profitable for investment banks, but also risky.
C) Technology-related stocks are likely to increase in value over the next decade.
D) Young people are a good target market for social networking devices.
E) Investment banks that make a poor decision are likely to look bad in the public eye.

ANSWER

Answer: B
Explanation: B) The prompt illustrates the discussion that investment bankers need to have before agreeing to underwrite a new stock issue. So Choice B is correct: Such firms need to weigh potential risks and advantages. While Choices C, D, and E may be valid opinions, they are not as directly relevant to the disagreement between Brett and Latisha. The issue is whether this particular venture is prudent, not whether stocks of info-tech firms will advance, tablets will sell to young people, or bad decisions will make for bad press. Choice A presumes that conservatism is always the right choice, but avoiding risks can also pass up chances to profit.