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Investing in real estate would be a profitable venture at

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Investing in real estate would be a profitable venture at [#permalink] New post 05 May 2010, 22:56
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E

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Question Stats:

64% (02:11) correct 36% (01:00) wrong based on 22 sessions
Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazine’s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.

Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) Some home owners are satisfied with only one home.
(B) About half of the people who buy homes are investing in their first home.
(C) About half of the people who buy homes have to take out a mortgage to do so.
(D) Only a quarter of the homes that are built are sold within the first two weeks.
(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.
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Re: Real estate investment would be a profitable venture [#permalink] New post 06 May 2010, 03:37
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Investing in real estate would be a profitable venture at this time. A survey in House magazine revealed that 85% of the magazine’s readers are planning to buy a second home over the next few years. A study of the real estate industry, however, revealed that the current supply of homes could only provide for 65% of that demand each year.

Which of the following, if true, would undermine the validity of the investment advice in the paragraph above?
(A) Some home owners are satisfied with only one home.
(B) About half of the people who buy homes are investing in their first home.
(C) About half of the people who buy homes have to take out a mortgage to do so.
(D) Only a quarter of the homes that are built are sold within the first two weeks.
(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.


Conclusion:
Investment in real estate is profitable.

Premise : 85% of magazine readers planned to buy second house. ( Current Demand )
Counter Premise : Current supply of House could satiesfy 65% of the demand.

We need to tell that investment advice is not profitable.

(A) Some home owners are satisfied with only one home. ( we dont know the number )

(B) About half of the people who buy homes are investing in their first home.---Wrong Answer--- ( Any how people are purchasing house)

(C) About half of the people who buy homes have to take out a mortgage to do so. ---Wrong Answer---( Out of scope - we don't care about how they purchase home

(D) Only a quarter of the homes that are built are sold within the first two weeks. ( no need )

(E) Only a quarter of those who claim that they want a second home actually end up purchasing one.---Wrong Answer--( e.x Magazine readers - 100 nos, 85 - second home buyers , quarter of them end up with first home (i.e) 63 of people need to buy the second house which is equal to 63% . So demand is equal to supply. So it is not profitable to invest in second house. )

My Answer :E)
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Re: Real estate investment would be a profitable venture [#permalink] New post 06 May 2010, 05:35
thanks..
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Re: Real estate investment would be a profitable venture [#permalink] New post 06 May 2010, 09:54
it is (E).
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Re: Real estate investment would be a profitable venture [#permalink] New post 20 Oct 2010, 23:13
This is easy. E is the answer.
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Re: Real estate investment would be a profitable venture [#permalink] New post 26 Oct 2010, 13:03
+1 E
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Re: Real estate investment would be a profitable venture [#permalink] New post 26 Oct 2010, 18:52
+1 E
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Re: Investing in real estate would be a profitable venture at [#permalink] New post 21 Sep 2012, 19:41
However, the right answer is D
Can you explain why E is wrong?
Re: Investing in real estate would be a profitable venture at   [#permalink] 21 Sep 2012, 19:41
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