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

QUESTION

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

A) Tatsuya is an economics professor with a clear understanding of investments.
B) Forbes magazine is respected by many investors as a source of sound financial advice.
C) Just before the recession, their broker recommended that they move funds from stocks to bonds.
D) Over a ten-year period, 85 percent of growth stocks outperformed blue-chip stocks.
E) Amatriya’s job pays well enough to cover their current travel and discretionary purchases.

ANSWER

Answer: D
Explanation: D) If an investor can wait a minimum of ten years before needing the investment, then a buy-and-hold strategy usually pays off even if the market is unstable. So Choice D is correct: Growth stocks are volatile in value but have the capability to increase in value relative to more conservative blue-chip stocks. Choice A suggests that Tatsuya’s opinion, whether right or wrong, is informed. Choice B somewhat strengthens Amatriya’s position, but even an experienced financial publication may be wrong. Choice E is a general fact with no bearing on the issue.