Which of the following, if true, most directly strengthens Darrell’s s

QUESTION

Which of the following, if true, most directly strengthens Darrell’s strategy?

A) Fewer than 15 percent of young investors check the performance of their mutual funds regularly.
B) Darrell has more than 25 years’ experience in financial management.
C) Government and investment-grade bonds have a very low probability of default.
D) Each time Leonid Growth Fund showed a quarterly loss in value, at least 10 percent of investors moved their funds to one that was more stable.
E) Many financial experts think another major crash in the stock market might come in the next five years.

ANSWER

Answer: D
Explanation: D) If customers have been quick to abandon a fund when it posts a quarterly loss, then Darrell is justified in responding to this trend. So Choice D is correct: A managerial shift to a more stable growth in value is clearly a prudent move. If there is hard evidence to support a market downturn (Choice E), this might strengthen Darrell’s argument, but at present, it is only speculation. Choices B and C are general information that do not bear on the specific marketing strategy for Leonid. Choice A might weaken Darrell’s position since only a minority of investors might even be aware of the fund’s short-term fluctuation in value.