Because property values sometimes fluctuate in response to economic conditions beyond the purchaser's control, an investment in a home may underperform when compared to that of other widely available classes of investments.

A) an investment in a home may underperform when compared to that of other widely available classes of investments

B) an investment in a home may underperform compared with other widely available classes of investments

C) an investment in a home may underperform when comparing it with other widely available classes of investments

D) compared to that of other widely available classes of investments, an investment in a home may underperform

E) in comparison with that of other widely available classes of investments, an investment in a home may underperform

A. That has no proper referent. If it refers to investment then that is redundant.
B. Correct. Two investments are properly compared.
C. Again it has same problem as with that in A.
D. Same as A
E. Same as A
B is correct

Please explain the solution to this question.Why B is selected and A & D are eliminated?

"Compared with" used for same type i.e. "Investment" here.
"compared to" used to compare two different kind.
So A,C and D is wrong.

Posted from my mobile device

A. an investment in a home may underperform when compared to that of other widely available classes of investments. We have to be strict as to when we use 'when'. When has to refer to a specific time period

B. looks fine. Keep B

C. an investment in a home may underperform when comparing it with other widely available classes of investments. C has the same problem as option A does. Eliminate C

D. compared to that of other widely available classes of investments, an investment in a home may underperform. When we see 'that' we rephrase the sentence by putting the exact noun that 'that' is trying to replace. Here we have compared to 'investment' of other widely available classes of investment? This does not make any sense. Eliminate D

E. Option E has same problem as option D does. Eliminate E.

We are left with B

compared with vs compared to is not a deciding split. Either idiom is correct... https://gmatclub.com/forum/compared-to- ... 54753.html

The most important issue in this SC question is the use of "that of"

(A) "that of" refers to "an investment". If we substitute "an investment" in place of "that of," then the sentence suffers from redundancy. Eliminate.

(B) does not use "that of". (B) logically compares an investment with other widely available classes of investments. Correct.

(C) is incorrect for the use of pronoun "it", which has no logical referent. If "it" refers to "an investment," then similar to (A), the sentence will suffer from redundancy. Eliminate.

(D) "that of" has no possible referent. Eliminate.

(E) "that of" has no possible referent. Eliminate.
_________________

PS, An Obvious thing : To improve yourself in SC, REVIEW every mistake in every answer choice after you attempt a problem.

Because property values sometimes fluctuate in response to economic conditions beyond the purchaser's control, an investment in a home may underperform when compared to that of other widely available classes of investments.

Observing the SS - “Because property…..control” is a subordinate clause, the part after comma requires a main clause.


A) an investment in a home may underperform when compared to that of other widely available classes of investments
Whenever there is comparison, it is better to replace the “that” with the appropriate noun.
Here “when compared to the investment of other widely available classes of investments” – Doesn’t make sense. So Incorrect.

B) an investment in a home may underperform compared with other widely available classes of investments
Best of ALL.

C) an investment in a home may underperform when comparing it with other widely available classes of investments
Meaning is of utmost importance.”…… may underperform when comparing it with…..” means what that it underperforms only WHEN we compare it, otherwise it doesn’t ?
Incorrect

D) compared to that of other widely available classes of investments, an investment in a home may underperform
Property value is being compared to “that of other widely available classes of”
Incorrect comparison and doesn’t make sense.

E) in comparison with that of other widely available classes of investments, an investment in a home may underperform
Property value is being compared to “that of other widely available classes of”
Incorrect comparison and doesn’t make sense.

[quote="generis"]Because property values sometimes fluctuate in response to economic conditions beyond the purchaser's control, an investment in a home may underperform when compared to that of other widely available classes of investments.

A) an investment in a home may underperform when compared to that of other widely available classes of investments

B) an investment in a home may underperform compared with other widely available classes of investments

C) an investment in a home may underperform when comparing it with other widely available classes of investments

D) compared to that of other widely available classes of investments, an investment in a home may underperform

E) in comparison with that of other widely available classes of investments, an investment in a home may underperform

this is about the use of "compare"
in choice c, "when comparing " refer to the subject "an investment ". this is incorrect. "comparing" here works as participle.
in choice b, the official answer, "compared with" work as a preposition. it is not past participle because it can not refer to any near noun. "compared to" can also work as a preposition.

so, now, we can make a comparison sentence , using "compared with/to" as a preposition. this pattern should be remembered. other kinds of comparison is to use "more/less/fewer/...than". the comparison with "compared with/to" is also popular but we seldom realize how "compared with/to" work. it works as preposition

third point
"when compared" should capture our attention. this phrase is normally wrong. why

"when compared " show a time relation. only when X happen, Y happen.
in choice a, "when compared " refer to subject " an investment ". "compared " here work as a past participle and is correct. but the error is that only when investment is compared with..., investment may under perform.

this error made by "when compared..." happen frequently on old og books. this error is not new.
takeaway, "when compared..." show a time relation and is likely to be wrong on gmat.

Because property values sometimes fluctuate in response to economic conditions beyond the purchaser's control, an investment in a home may underperform when compared to that of other widely available classes of investments.

(A) an investment in a home may underperform when compared to that of other widely available classes of investments

(B) an investment in a home may underperform compared with other widely available classes of investments

(C) an investment in a home may underperform when comparing it with other widely available classes of investments

(D) compared to that of other widely available classes of investments, an investment in a home may underperform

(E) in comparison with that of other widely available classes of investments, an investment in a home may underperform

If we compare first few words on answer options

In A, B and C, we have "an investment".....This is a noun modifier or a superior modifier....highly preferred option in GMAT......Simply eliminate D and E
In A, "that.." is acting as a pronoun but does not have antecedent.....Eliminate A
In C, "it" refers to "an investment"...replacing "it" with "an investment" will bring redundancy. Eliminate C

Hence, B is the correct answer