Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Oct 2014, 06:18

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

complete the argument

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Senior Manager
Senior Manager
User avatar
Affiliations: ACA, CPA
Joined: 26 Apr 2009
Posts: 445
Location: Vagabond
Schools: BC
WE 1: Big4, Audit
WE 2: Banking
Followers: 5

Kudos [?]: 37 [1] , given: 41

complete the argument [#permalink] New post 04 Oct 2009, 02:47
1
This post received
KUDOS
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

35% (01:59) correct 65% (01:36) wrong based on 38 sessions
Source : LSAT
Note : I got a very similar question in my GMAT attempt

When the rate of inflation exceeds the rate of return on the most profitable investment available, the difference between those two rates will be the percentage by which, at a minimum, the value of any investment will decline. If in such a circumstance the value of a particular investment declines by more than that percentage, it must be true that:
Which one of the following logically completes the argument?

A) the rate of inflation has risen

B) the investment in question is becoming less profitable

C) the investment in question is less profitable than the most profitable investment available

D) the rate of return on the most profitable investment available has declined

E) there has been a change in which particular investment happens to be the most profitable available

Pls give your line of thinking to arrive at the answer.
_________________

If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down.

Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
Director
Director
User avatar
Joined: 01 Apr 2008
Posts: 909
Schools: IIM Lucknow (IPMX) - Class of 2014
Followers: 15

Kudos [?]: 234 [0], given: 18

Re: complete the argument [#permalink] New post 04 Oct 2009, 08:18
snipertrader wrote:
Source : LSAT

A) the rate of inflation has risen

B) the investment in question is becoming less profitable

C) the investment in question is less profitable than the most profitable investment available

D) the rate of return on the most profitable investment available has declined

E) there has been a change in which particular investment happens to be the most profitable available


Looks like C to me. A and D can be true, but they are not MUST.
If the decline is more than the formula that is given, then the investment in question is other than the most profitable one, because for the most profitable investment the decline will me minimum.
Senior Manager
Senior Manager
User avatar
Affiliations: ACA, CPA
Joined: 26 Apr 2009
Posts: 445
Location: Vagabond
Schools: BC
WE 1: Big4, Audit
WE 2: Banking
Followers: 5

Kudos [?]: 37 [0], given: 41

Re: complete the argument [#permalink] New post 04 Oct 2009, 08:29
OA is C

This is how i approached the problem. I was looking for an external factor that would have caused the effect mentioned. (decline in the value of Investment)


A) the rate of inflation has risen - Already given in the stem

B) the investment in question is becoming less profitable - Out of scope

C) the investment in question is less profitable than the most profitable investment available - Contender

D) the rate of return on the most profitable investment available has declined - Already given in the stem

E) there has been a change in which particular investment happens to be the most profitable available - Contender

Was stuck between C and E.
_________________

If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down.

Manager
Manager
User avatar
Joined: 18 Jul 2009
Posts: 170
Location: India
Schools: South Asian B-schools
Followers: 2

Kudos [?]: 62 [0], given: 37

Re: complete the argument [#permalink] New post 04 Oct 2009, 08:37
????????? :roll: ?????????
_________________

Bhushan S.
If you like my post....Consider it for Kudos :-D

Manager
Manager
avatar
Joined: 30 Sep 2009
Posts: 59
Followers: 1

Kudos [?]: 7 [0], given: 6

Re: complete the argument [#permalink] New post 04 Oct 2009, 08:39
It should not be E....
I too got really confused and took some time to get it right between C and E.
A minor conclusion that can also be drawn from the stimuli is that, if somebody, invests in an instrument other than the most profitable investment, he is bound to get a higher negative return....
This excludes option E.
Manager
Manager
avatar
Joined: 07 Jul 2009
Posts: 230
Followers: 3

Kudos [?]: 43 [0], given: 13

Re: complete the argument [#permalink] New post 04 Oct 2009, 10:14
Good question. C for me as well.
Manager
Manager
avatar
Joined: 14 Dec 2008
Posts: 171
Followers: 1

Kudos [?]: 14 [0], given: 39

Re: complete the argument [#permalink] New post 04 Oct 2009, 20:24
I chose B, why B cannot be answer?
Senior Manager
Senior Manager
User avatar
Affiliations: ACA, CPA
Joined: 26 Apr 2009
Posts: 445
Location: Vagabond
Schools: BC
WE 1: Big4, Audit
WE 2: Banking
Followers: 5

Kudos [?]: 37 [0], given: 41

Re: complete the argument [#permalink] New post 04 Oct 2009, 20:37
B and C are in a way similar but B is very vague. (becoming less profitable).
The argument is based on two aspects - Rate of inflation & most profitable investment.

When in doubt... i always try to rally around the key words given in the stem.
Hope this helps.

manojgmat wrote:
I chose B, why B cannot be answer?

_________________

If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down.

Intern
Intern
avatar
Joined: 16 Aug 2009
Posts: 5
Followers: 0

Kudos [?]: 1 [0], given: 0

Re: complete the argument [#permalink] New post 08 Oct 2009, 21:13
Its C.

The questions says that

P (loss) = Inflation percent - profit on most profitable investment

If a particular investment got a greater loss then it means that its not as profitable as most profitbale

To explain in numbers
investment made - 100
Inflation percent be 5%
Profit on most profitable be 3%

so the real value of investment should 105 but is only 103 and p is 2%

so if a particular investment has loss greater p that means that it is less profitable since the inflations stays the same for all investments......
Intern
Intern
User avatar
Joined: 25 Jul 2009
Posts: 44
Followers: 0

Kudos [?]: 2 [0], given: 0

Re: complete the argument [#permalink] New post 09 Oct 2009, 03:47
This one is real toughie between B and C
B says the businesss is less proffitable which is correct. To make the investment go below the minimum percentage either the cost or the revenue has to decrease. Either way both will result in the profitibility of the business.

C is also kind of correct. Had it been 'the investment in question is less profitable than the most profitable investment available theortically' it would have made more sense because practically it might happen that all businesses have failed to at much deeper level than the business at hand.
So the business we are talking about perhaps becomes the most proffitable of all.
Senior Manager
Senior Manager
avatar
Joined: 16 Jul 2009
Posts: 266
Followers: 2

Kudos [?]: 43 [0], given: 3

Re: complete the argument [#permalink] New post 09 Oct 2009, 07:38
Was stuck between B and C.. Thanks sniper your POE is really helpful to arrive at the right answer..
Director
Director
User avatar
Joined: 24 Aug 2007
Posts: 956
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 54

Kudos [?]: 732 [0], given: 40

Re: complete the argument [#permalink] New post 10 May 2010, 06:15
We can't bring new info to the argument. So, only A and C left.

Confused b/w A and C, as it is given that when the rate of inflation exceeds (not has exceeded - crucial point). Due to this I marked A.

It is my fault no to read the argument carefully that we are given two types of investments: most profitable and any.

Thanks snippertrader for the post.
_________________

Want to improve your CR: cr-methods-an-approach-to-find-the-best-answers-93146.html
Tricky Quant problems: 50-tricky-questions-92834.html
Important Grammer Fundamentals: key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html

Intern
Intern
avatar
Joined: 04 Feb 2010
Posts: 8
Followers: 0

Kudos [?]: 0 [0], given: 4

Re: complete the argument [#permalink] New post 10 May 2010, 14:45
manojgmat wrote:
I chose B, why B cannot be answer?


There are TWO investments posited in the question. The first is "the most profitable investment". The second is "a particular investment". The second is also the investment under investigation.

B cannot be the answer because B assumes that the "particular investment" IS "the most profitable investment", but nothing in the question explicitly states that they are the same.
Manager
Manager
avatar
Joined: 21 Jan 2010
Posts: 233
Followers: 4

Kudos [?]: 52 [0], given: 38

Re: complete the argument [#permalink] New post 11 May 2010, 09:13
Xisiqomelir wrote:
manojgmat wrote:
I chose B, why B cannot be answer?


There are TWO investments posited in the question. The first is "the most profitable investment". The second is "a particular investment". The second is also the investment under investigation.

B cannot be the answer because B assumes that the "particular investment" IS "the most profitable investment", but nothing in the question explicitly states that they are the same.



Also, B cannot be right because a particular investment can become more profitable but still decline more than "that percentage", which is the difference between inflation rate the the ROI of the MOST profitable investment.
Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 658
Followers: 10

Kudos [?]: 84 [0], given: 51

Re: complete the argument [#permalink] New post 06 May 2011, 12:31
'B cannot be the answer because B assumes that the "particular investment" IS "the most profitable investment", but nothing in the question explicitly states that they are the same'

good explanation this , i came to C in 1:59 min .
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 658
Followers: 10

Kudos [?]: 84 [0], given: 51

Re: complete the argument [#permalink] New post 06 May 2011, 12:35
@ calvinhobbes , i don't understand how this is possible

''Also, B cannot be right because a particular investment can become more profitable but still decline more than "that percentage", which is the difference between inflation rate and the ROI of the MOST profitable investment''
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Manager
Manager
avatar
Joined: 16 Mar 2011
Posts: 189
Followers: 1

Kudos [?]: 4 [0], given: 1

Re: complete the argument [#permalink] New post 06 May 2011, 13:22
C is the answer because:
the stem says "When the rate of inflation exceeds the rate of return on the most profitable investment available, the difference between those two rates will be the percentage by which, at a minimum, the value of any investment will decline. If in such a circumstance the value of a particular investment declines by more than that percentage, it must be true that:

the most important phrase in the stem is "most profitable", the base of the %term in question is the comparison b/w inflation and the most profitable. so anything that is more than this % have to be compared to the "most profitable".

C is the only choice providing the specific base of comparison "most profitable",
VP
VP
avatar
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1364
Followers: 12

Kudos [?]: 144 [0], given: 10

Re: complete the argument [#permalink] New post 16 May 2011, 02:55
Most profitable investment will have a profitability decline %.
if the profitability decline % is more for the investment in question,its obvious that the profitability of the investment will be lesser than the most profitable investment.

Hence C comes out clean in this.
_________________

Visit -- http://www.sustainable-sphere.com/
Promote Green Business,Sustainable Living and Green Earth !!

Manager
Manager
User avatar
Joined: 14 Apr 2011
Posts: 201
Followers: 2

Kudos [?]: 19 [0], given: 19

Reviews Badge
Re: complete the argument [#permalink] New post 13 Jul 2011, 09:02
was stuck between B and C. felt inclined to choose C but picked B as it seemed correct.

ruled out E as it seems out of scope/unclear as the "change": whatever that is - it is not mentioned.
_________________

Looking for Kudos :)

Re: complete the argument   [#permalink] 13 Jul 2011, 09:02
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic CR: Complete the argument..... SecondCrack 1 08 Jun 2013, 04:54
Complete the argument asmit123 2 24 May 2011, 22:16
CR Complete the argument? lalithajob 0 20 Aug 2010, 22:50
Experts publish their posts in the topic Complete the argument pittgreek 1 24 Oct 2009, 15:10
Display posts from previous: Sort by

complete the argument

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.