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# A mutual fund having billions of dollars in assets will

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A mutual fund having billions of dollars in assets will [#permalink]

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19 Jul 2012, 15:38
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A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent
(B) companies, and it is rare to hold at least one percent or more
(C) companies and rarely do they hold more than one percent
(D) companies, so that they rarely hold more than one percent
(E) companies; rarely do they hold one percent or more
[Reveal] Spoiler: OA
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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19 Jul 2012, 18:29
Are you sure OA is 'A'?

I'm leaning towards C.

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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19 Jul 2012, 18:34
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A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent

The clause 'rarely holding...' correctly modifies the subjet 'mutual fund.'

(B) companies, and it is rare to hold at least one percent or more

Here the 'it' is vague and unnecessary.

(C) companies and rarely do they hold more than one percent

Who is the 'they'? If we are referring to the companies than doing so is misleading. The original sentence makes it clear the mutual fund is doing the holding.

(D) companies, so that they rarely hold more than one percent

Same as (C).

(E) companies; rarely do they hold one percent or more

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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19 Jul 2012, 18:54
Chris,

I didn't know for 'that' clause, you can use Ing-modifier.
I somehow felt the choice 'A' awkward or fragment.

Thanks.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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19 Jul 2012, 20:06
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betterscore wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent
(B) companies, and it is rare to hold at least one percent or more
(C) companies and rarely do they hold more than one percent
(D) companies, so that they rarely hold more than one percent
(E) companies; rarely do they hold one percent or more

Very good question,

Meaning,

A big MF company invests money | in many corporations | so that its investment remains around 1% in each corporations.

Structure,

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

,rarely holding is for Mutual fund NOT companies
having billions of dollars - holding (verb+ing) modifier is showing an action of the subject MUTUAL FUND
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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20 Jul 2012, 11:19
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betterscore wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent
(B) companies, and it is rare to hold at least one percent or more
(C) companies and rarely do they hold more than one percent
(D) companies, so that they rarely hold more than one percent
(E) companies; rarely do they hold one percent or more

Subject is " A mutual fund"............."holding more than............." modifies subject ' A mutual fund'

C, D & E straight out as it uses plural "they"
B uses wrong idiom " at least or more" and "it is rare....." construction is awkward.

A is correctly using verb-ing modifier.

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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20 Jul 2012, 11:22
Good job thevenus and ChrisLeLe. The adjective clause rarely holding...., IMO, modified the whole clause preceded it as the consequence of investing in hundreds of companies.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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20 Jul 2012, 11:40
is rarely acting as advaeb modifying the verb holding?
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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22 Jul 2012, 08:13
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A simple open and shut case. ‘A mutual fund’ is singular and the use of ‘they’ is subject –pronoun mismatch. Therefore, C, D, and E are gone. Between A and B, the word 'at least' distorts the meaning in B. 'Rarely holding more than one percent' is not the same 'rarely holding at least one percent'. So A
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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16 Nov 2012, 00:30
Pls read my post below for clarification.

Last edited by Archit143 on 15 Dec 2012, 13:02, edited 1 time in total.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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16 Nov 2012, 02:11
Archit143 wrote:
Pls help me to get my logic clear.
I read in one of the posts of dagh or vipps dont remem exactly that we should look for a conjunction after a comma.

Though i got A as correct answer, which is also the OA.
Pls help me to get my logic cleared on this topic.

Also pls correct me if i am wrong is the above mentioned error considered "run on"

Hi Archit!! Above is not a run on sentence, later part of the sentences is a modifier modifying the subject of the clause. We use conjunction after a comma to join two clauses.

http://www.writingcentre.uottawa.ca/hyp ... junct.html

Hope this helps.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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15 Dec 2012, 12:57
After referring to various prep materials and getting myself clear on logic.
Here is my take on the above question.

Meaning:- A mutual fund investing company will invest in hundreds of companies but does not holds more than !% share of any one company.

Now since i analyzed the meaning A, seems to be lucid and clear as the phrase after the comma starting with rarely is an adverbial phrase and is modifier, modifying Companies. is correct.

B distorts the meaning as it says it is rare to hold more than 1% or more.......It means the company has got share of few companies that is more than 1% , its not the intended meaning.

I read Chris lee mentioned It is vague absolutely not. It appears at the starting of independent clause. it is farely correct to mention It at the beginning of sentence.

In C , D and E they refers to Companies whose share the Mutual investment company holds. It is wrong, In fact it should refer to A mutual fund...

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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13 Jan 2013, 11:02
ChrisLele wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent

The clause 'rarely holding...' correctly modifies the subjet 'mutual fund.'

(B) companies, and it is rare to hold at least one percent or more

Here the 'it' is vague and unnecessary.

(C) companies and rarely do they hold more than one percent

Who is the 'they'? If we are referring to the companies than doing so is misleading. The original sentence makes it clear the mutual fund is doing the holding.

(D) companies, so that they rarely hold more than one percent

Same as (C).

(E) companies; rarely do they hold one percent or more

ChrisLele,

Can you please clarify your explanation for Option B ? How the 'it' is vague ?
I ruled out B more on the meaning prospective than what you have explained.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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12 Sep 2013, 21:59
Hi folks,

Just a small query.

I know that option (D) looses its significance when it uses plural 'THEY' instead of singular pronoun to refer back to the 'MUTUAL FUND'.

So if I make option (D) as below

(D).companies, so that IT rarely hold more than one percent.
(A). companies, rarely holding more than one percent.

Which option would be the best => A or D

Furthermore , while (A) has VERBING 'holding' modifier with an adverb 'rarely', (D) has a 'SO THAT' effect and then the main clause again.

And the meaning of both are not same.

(A). means => Rarely holding blah blah blah, mutual fund invests.......
(D). means => MF invests in....., and as a result it rarely holds blah blah blah

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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12 Sep 2013, 23:43
TGC wrote:
Hi folks,

Just a small query.

I know that option (D) looses its significance when it uses plural 'THEY' instead of singular pronoun to refer back to the 'MUTUAL FUND'.

So if I make option (D) as below

(D).companies, so that IT rarely hold more than one percent.
(A). companies, rarely holding more than one percent.

Which option would be the best => A or D

Furthermore , while (A) has VERBING 'holding' modifier with an adverb 'rarely', (D) has a 'SO THAT' effect and then the main clause again.

And the meaning of both are not same.

(A). means => Rarely holding blah blah blah, mutual fund invests.......
(D). means => MF invests in....., and as a result it rarely holds blah blah blah

Hi TGC.

(1) Because of a "comma" the usage of "so that" is incorrect. The intended meaning is that the second part is just the modifier. If you put so that (I assume there is no comma), you will change the modifier part to the main part of sentence. Thus, even though you change plural pronoun "they" to singular pronoun "it", D is still incorrect.

(2) Verb-ing modifier with a comma --> modifies a preceding clause --> the modifier can tell you the result of the preceding clause-- OR --- provide more information. In this case, the modifier should tell the result of the action "investing in hundreds of companies" --> the result is the fund rarely holds more than 1% in of the shares of any particular corporation.
There is no reason to replace the modifier at the beginning as in your example. Thus, your "new" A and D are pretty the same in meaning.

Best regards.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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13 Sep 2013, 00:35
pqhai wrote:
TGC wrote:
Hi folks,

Just a small query.

I know that option (D) looses its significance when it uses plural 'THEY' instead of singular pronoun to refer back to the 'MUTUAL FUND'.

So if I make option (D) as below

(D).companies, so that IT rarely hold more than one percent.
(A). companies, rarely holding more than one percent.

Which option would be the best => A or D

Furthermore , while (A) has VERBING 'holding' modifier with an adverb 'rarely', (D) has a 'SO THAT' effect and then the main clause again.

And the meaning of both are not same.

(A). means => Rarely holding blah blah blah, mutual fund invests.......
(D). means => MF invests in....., and as a result it rarely holds blah blah blah

Hi TGC.

(1) Because of a "comma" the usage of "so that" is incorrect. The intended meaning is that the second part is just the modifier. If you put so that (I assume there is no comma), you will change the modifier part to the main part of sentence. Thus, even though you change plural pronoun "they" to singular pronoun "it", D is still incorrect.

(2) Verb-ing modifier with a comma --> modifies a preceding clause --> the modifier can tell you the result of the preceding clause-- OR --- provide more information. In this case, the modifier should tell the result of the action "investing in hundreds of companies" --> the result is the fund rarely holds more than 1% in of the shares of any particular corporation.
There is no reason to replace the modifier at the beginning as in your example. Thus, your "new" A and D are pretty the same in meaning.

Best regards.

Hi there,

,so that independent clause (Is correct usage which shows a result)

True: Verb-Ing modifies preceding clause or presents a result of a preceding clause. However , per the meaning of sentence it is correct to say

Rarely holding more than 1%, MF will invest...... (How MF will invest in companies...).....

, so that shows the result of the main clause here is what should be the intended meaning

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Re: A mutual fund having billions of dollars in assets will [#permalink]

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13 Sep 2013, 02:50
TGC wrote:
, so that shows the result of the main clause here is what should be the intended meaning

This is not the intended meaning. so that would convey that mutual funds intentionally do not hold more than one percent of the shares of any particular corporation.

But the only intention of mutual funds is actually to invest money in hundreds of companies. The outcome (consequence) of this strategy is that mutual funds end up holding not more than one percent of the shares of any particular corporation.

In other words, holding not more than one percent of the shares of any particular corporation is just a consequence; so that would not convey consequence.

In fact, so that would reverse the intended meaning. The intended meaning is:

1. Mutual funds invest in hundreds of companies.

2. As a result, mutual funds end up holding not more than one percent of the shares of any particular corporation.

so that depicts:

1. The intention of mutual funds is to hold not more than one percent of the shares of any particular corporation.

2. To accomplish this, mutual funds invest money in hundreds of companies
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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06 Jan 2014, 10:02
betterscore wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent
(B) companies, and it is rare to hold at least one percent or more
(C) companies and rarely do they hold more than one percent
(D) companies, so that they rarely hold more than one percent
(E) companies; rarely do they hold one percent or more

Subject is mutual fund, and its antecedent needs to be singular, C/D/E gone since they use "they". "it" in B is ambiguous and may refer to "companies", so A is the best option.
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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03 May 2014, 21:32
ChrisLele wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent

The clause 'rarely holding...' correctly modifies the subjet 'mutual fund.'

(B) companies, and it is rare to hold at least one percent or more

Here the 'it' is vague and unnecessary.

(C) companies and rarely do they hold more than one percent

Who is the 'they'? If we are referring to the companies than doing so is misleading. The original sentence makes it clear the mutual fund is doing the holding.

(D) companies, so that they rarely hold more than one percent

Same as (C).

(E) companies; rarely do they hold one percent or more

Sir Can you explain Option A little bit more. Thanks!
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Re: A mutual fund having billions of dollars in assets will [#permalink]

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06 May 2014, 23:44
Expert's post
honchos wrote:
ChrisLele wrote:
A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent

The clause 'rarely holding...' correctly modifies the subjet 'mutual fund.'

(B) companies, and it is rare to hold at least one percent or more

Here the 'it' is vague and unnecessary.

(C) companies and rarely do they hold more than one percent

Who is the 'they'? If we are referring to the companies than doing so is misleading. The original sentence makes it clear the mutual fund is doing the holding.

(D) companies, so that they rarely hold more than one percent

Same as (C).

(E) companies; rarely do they hold one percent or more

Sir Can you explain Option A little bit more. Thanks!

Hi,

Choice A correctly uses the comma + verb- ing modifier to modify the preceding clause. The comma + verb –ing modifier presents either additional information about the preceding clause or the result of that clause. Here it presents the result of the preceding clause. So, essentially it means that the author is trying to say that because a mutual fund with a lot of money generally invests in a number of companies, it rarely holds more than one percent of the shares of any particular company.

Now typically, the information given in the comma+ verb –ing modifier should make sense with the subject of the modified clause. Let’s check the same here:

A mutual fund (with a particular feature) rarely holds more than one percent of the shares of any particular corporation.

As you can see, the information given in the modifier (holding…corporation) does make sense with the subject of the modified clause (a mutual fund).

To understand the concept and various uses of comma + verb –ing modifier more, please refer to our in depth article on the subject here :

https://e-gmat.com/blogs/?p=3465

Hope the above discussion helps!

Regards,
Neeti.
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Re: A mutual fund having billions of dollars in assets will   [#permalink] 06 May 2014, 23:44

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