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31 Aug 2019, 06:27
Kudos
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
53% (01:40) correct
47%
(02:01)
wrong
based on 473
sessions
History
Date
Time
Result
Not Attempted Yet
Eugene Fama's theory of there being "efficient" financial markets, meaning that an investor, given widely available information, cannot consistently achieve returns in excess of average market returns, is still respected.
A. of there being "efficient" financial markets, meaning that an investor, given widely available information, cannot consistently achieve returns in excess of average market returns, is still respected
B. of "efficient" financial markets whose average returns cannot be exceeded by an investor, given widely available information, is still respected
C. that financial markets are "efficient," and therefore an investor given widely available information cannot consistently achieve returns in excess of average market returns, is still respected
D. which is that there can be no investor given widely available information who consistently achieves returns in excess of average returns in an "efficient" financial market is still respected
E. which is still respected is that financial markets are "efficient," in that an investor given widely available information cannot consistently achieve returns in excess of average market returns
A. of there being "efficient" financial markets, meaning that an investor, given widely available information, cannot consistently achieve returns in excess of average market returns, is still respected
B. of "efficient" financial markets whose average returns cannot be exceeded by an investor, given widely available information, is still respected
C. that financial markets are "efficient," and therefore an investor given widely available information cannot consistently achieve returns in excess of average market returns, is still respected
D. which is that there can be no investor given widely available information who consistently achieves returns in excess of average returns in an "efficient" financial market is still respected
E. which is still respected is that financial markets are "efficient," in that an investor given widely available information cannot consistently achieve returns in excess of average market returns
01 Sep 2019, 00:45
Kudos
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Hi
Here C is the best option available.
A. This choice is out because the modifier 'being efficient financial market' do not have modifying entity.
B. The relative pronoun whose is a possessive pronoun used for living things, but here it is modifying financial markets.
C. Correct choice
D. Which is that is awkward
E. The main idea is that the theory is still respected but in this choice, it is presented in a non-restrictive clause.
Here C is the best option available.
A. This choice is out because the modifier 'being efficient financial market' do not have modifying entity.
B. The relative pronoun whose is a possessive pronoun used for living things, but here it is modifying financial markets.
C. Correct choice
D. Which is that is awkward
E. The main idea is that the theory is still respected but in this choice, it is presented in a non-restrictive clause.
02 Sep 2019, 00:22
Kudos
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Bunuel
Official Explanation
Creating a filter: we can stop early in the original sentence, because we come across the words "there being," an unnecessary gerund. It can simply be dropped; we are talking about Fama's "theory of efficient financial markets." Let's eliminate (A) and move on to the answer choices.
Applying the filter: Choice (B) distorts the intended meaning, because it doesn't make clear that having average returns that can't be exceeded is the definition of what makes a market efficient; with the word "whose," that fact is coming across as additional information about the markets. And the modifier "given widely available information" is floating in space, rather than as a condition for not exceeding the average returns. So (B) is out. Choice (C) is better, so we can come back to (C). In choice (D), the use of "which" would initiative a nonrestrictive clause; in other words, it implies that the theory is uniquely defined, in which case the "which" phrase must be set off by commas. It seems to indicate that Fama has only one theory. The phrase "there can be no investor" also expresses the idea inaccurately, because Fama is really talking about what existing investors are able to do, not what kinds of investors are allowed to exist by the rules of physics or something. Choice (D) is out. Choice (E) has another "which" clause that needs commas, and (E) also distorts the meaning by taking the main point -- the fact that the theory is still respected -- and presenting it as a minor fact about the theory. And it presents the definition as the main point. So (E) is out.
The correct answer is (C).
