Which of the following, if true, most directly supports Brett’s positi

QUESTION

Which of the following, if true, most directly supports Brett’s position, that Olympic Daniels should purchase a large share of the Textmoor IPO?

A) Textmoor’s tablet is designed to be significantly more efficient and versatile than its competitors’ products.
B) Due to their high testosterone levels, males make more aggressive stock decisions than females.
C) The last IPO that Olympic Daniels handled resulted in a huge profit for the firm.
D) No other investment banking firm is purchasing the IPO, so Olympic Daniels will get all of the profits.
E) The IPO has been announced in important business publications such as the Wall Street Journal.

ANSWER

Answer: A
Explanation: A) If Brett can identify a factor that gives Textmoor’s new product an edge in the market, then he can make a case for underwriting the firm’s stock, even in an already crowded industry. So Choice A is correct: If the new tablet generates positive buzz prior to its rollout, the stock will be in demand and Olympic Daniels will profit. If Brett were involved in the previous IPO (Choice C), that might make him more bullish on this deal, but good fortune in the past does not ensure that the present decision is prudent. In fact, Choice D might support Latisha’s worries that other banks see Textmoor’s IPO as unlikely to succeed. Choice E is irrelevant, as IPOs are always announced in major business publications. And while it is true that males do tend to make more aggressive financial decisions (Choice B), it does not follow that these decisions are always wise or profitable.