Which of the following, if true, most weakens Amatriya’s argument? A)

QUESTION

Which of the following, if true, most weakens Amatriya’s argument?

A) In a downturn, growth stocks tend to decline in value much more dramatically than blue-chip stocks.
B) The last recession was the most serious one in more than 75 years.
C) The owners of Forbes magazine have an extensive portfolio of bonds.
D) Amatriya and Tatsuya want to buy a home in the Bahamas after she retires.
E) Neither partner has time at present to research the market and choose good growth companies.

ANSWER

Answer: A
Explanation: A) In most cases, an aggressive growth strategy is unwise if the investor will need to use the funds soon and can’t afford to lose them. So Choice A is correct: If it is true that Amatriya is worried that her retirement funds are insufficient, then she probably should not be risking them in a volatile market. None of the other choices address this part of her reasoning. Choice B does not, in itself, prove that the next serious recession won’t come for another 75 years, and Choice E is relevant only if they were making their investment choices rather than their broker. Choices C and D are irrelevant to the decision.