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Here is a detailed explanation to this question-
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
Meaning is crucial to solving this problem:Understanding the intended meaning is key to solving this question; the intended meaning of this sentence is that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and as a result, it will rarely hold more than one percent of the shares of any particular corporation.
Concepts tested here: Meaning + Verb Forms + Pronouns + Grammatical Construction + Awkwardness/Redundancy• Semicolons and the “comma + conjunction” construction are used to link two independent clauses; commas are used to link an independent clause with a dependent one; comma cannot be used to join two independent clauses.
• The introduction of the present participle ("verb+ing"- “holding” in this case) after comma generally leads to a cause-effect relationship.
A: Correct. This answer choice avoids the pronoun error seen in Options C, D, and E, as it uses no pronouns. Further, Option A uses the phrase "rarely holding...corporation"; the use of the "comma + present participle ("verb+ing" - "holding" in this sentence)" construction conveys the intended meaning - that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a result,
such a mutual fund will rarely hold more than one percent of the shares of any particular corporation; remember, the introduction of the present participle ("verb+ing"- “holding” in this case) after comma generally leads to a cause-effect relationship. Additionally, Option A correctly uses a comma to join the independent clause "A mutual fund having...companies" with the dependent clause "rarely holding...corporation". Besides, Option A is free of any awkwardness or redundancy.
B: This answer choice alters the meaning of the sentence through the clause "and it is rare...corporation"; the construction of this clause incorrectly implies that it is rare for
anyone to hold more than one percent of the shares of any particular corporation; the intended meaning is that it is rare for
a mutual fund having billions of dollars in assets to hold more than one percent of the shares of any particular corporation. Further, Option B uses the needlessly wordy phrase "at least one percent or more", leading to awkwardness and redundancy.
C: This answer choice incorrectly refers to the singular noun "A mutual fund" with the plural pronoun "they". Further, Option C alters the meaning of the sentence through the phrase "and rarely do they hold...corporation"; the construction of this phrase incorrectly implies that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a separate action, it will rarely hold more than one percent of the shares of any particular corporation; the intended meaning is that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a result, it will rarely hold more than one percent of the shares of any particular corporation. Additionally, Option C incorrectly uses conjunction ("and" in this sentence) to join the independent clauses "A mutual fund having...companies" and "rarely do they hold...corporation"; please remember, semicolons and the “comma + conjunction” construction are used to link two independent clauses.
D: This answer choice incorrectly refers to the singular noun "A mutual fund" with the plural pronoun "they". Further, Option D alters the meaning of the sentence through the clause "so that they...corporation"; the use of "so that" incorrectly implies that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies,
for the purpose of rarely holding more than one percent of the shares of any particular corporation; the intended meaning is that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a result, it will rarely hold more than one percent of the shares of any particular corporation.
E: This answer choice incorrectly refers to the singular noun "A mutual fund" with the plural pronoun "they". Further, Option E alters the meaning of the sentence through the clause "rarely do they hold...corporation"; the construction of this clause incorrectly implies a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a separate action, it will rarely hold more than one percent of the shares of any particular corporation; the intended meaning is that a mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, and
as a result, it will rarely hold more than one percent of the shares of any particular corporation.
Hence, A is the best answer choice.To understand the concept of "Comma + Present Participle for Cause-Effect Relationship" on GMAT, you may want to watch the following video (~3 minutes):
All the best!
Experts' Global Team
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