QUESTION
Which of the following, if true, most clearly strengthens Karola’s point of view?
A) E-Trade is somewhat quicker than Merrill Lynch in putting in orders.
B) Several other managers in the same firm use E-Trade and are satisfied with the quality of the investments they make.
C) E-Trade offers online chats with an experienced broker, so investors can get a second opinion prior to putting in an order.
D) Discount brokerages compensate their advisors with salaries rather than through commissions.
E) Most full-service brokers have been in business for 75 or more years.
ANSWER
Answer: C
Explanation: C) Many discount brokers now offer services analogous to those traditionally offered by full-service brokers. So Choice C is correct: If Larisa’s concern is to have professional advice available, then E-Trade’s online chat option may be a satisfactory alternative to telephone or office consultations. None of the other choices speak directly to the issue at hand. Good experiences by coworkers (Choice B) may support Karola’s argument in a general way, but the other managers’ investment agendas may be quite different from Larisa and Karola’s. The quickness of trading (Choice A) is not relevant unless the two plan to do day trading, and Choices D and E have no bearing on the issue.
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