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jg3swish
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jg3swish
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

I know the answer is A, but how is the phrase "rarely holding more than one percent" modifying mutual fund. Yes it makes sense, but is it allowed to reach that far back. Why is this, for example, wrong then?

"I typically invest in one company per year instead of multiple companies, holding 50% of my assets in cash "
Hi jg3swish

GMAT SC correct choices should be best among the given 5 choices. We won't be able to comment about any 1 sentence in isolation. Can you please provide the source of the sentence that you have identified as incorrect? It maybe possible that there is a better sentence in the other 4 answer choices because of which this is incorrect choice.

BTW there is also an expert reply on your query here

Looking forward for your revert...
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jg3swish
Why is this, for example, wrong then?

"I typically invest in one company per year instead of multiple companies, holding 50% of my assets in cash "
That example is correct, both structurally and logically. After all, it makes sense to add information to the idea that "I typically invest in one company per year instead of multiple companies," by saying that I hold 50% of my assets in cash.