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Investors should not rely on the predictions of stockbrokers

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Investors should not rely on the predictions of stockbrokers [#permalink]

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New post 18 Dec 2008, 13:49
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A
B
C
D
E

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(N/A)

Question Stats:

86% (01:14) correct 14% (01:25) wrong based on 19 sessions

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Investors should not rely on the predictions of stockbrokers who publicly predict trends in the stock market. If these stockbrokers were really able to predict these trends accurately and wished to profit as much as possible from their own predictions, they would keep this information to themselves.

Which of the following, if true, most strongly supports the argument above?

(A) The greater the accuracy of a stockbroker's past predictions about stock-market trends, the more likely it is that investors will believe the stockbroker's future predictions.
(B) Some investors who pay stockbrokers for confidential information about trends in the stock market nevertheless decide to follow their own predictions about these trends.
(C) Most stockbrokers have high enough salaries to live comfortably and thus do not care about getting rich by capitalizing on stock-market trends.
(D) The fewer investors who have access to accurate stock market prediction, the more money those who have access to such predictions can make.
(E) Because the stock market is unstable, investors unfamiliar with stock market trading practices have great difficulty predicting trends in the stock market.

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Re: CR - Stockbrokers [#permalink]

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New post 18 Dec 2008, 14:11
UnknownPhD wrote:
Investors should not rely on the predictions of stockbrokers who publicly predict trends in the stock market. If these stockbrokers were really able to predict these trends accurately and wished to profit as much as possible from their own predictions, they would keep this information to themselves.

Which of the following, if true, most strongly supports the argument above?

(A) The greater the accuracy of a stockbroker's past predictions about stock-market trends, the more likely it is that investors will believe the stockbroker's future predictions.
(B) Some investors who pay stockbrokers for confidential information about trends in the stock market nevertheless decide to follow their own predictions about these trends.
(C) Most stockbrokers have high enough salaries to live comfortably and thus do not care about getting rich by capitalizing on stock-market trends.
(D) The fewer investors who have access to accurate stock market prediction, the more money those who have access to such predictions can make.
(E) Because the stock market is unstable, investors unfamiliar with stock market trading practices have great difficulty predicting trends in the stock market.


I choose D
It gives reasons for Investors not to rely on stockbroker predictions.
It gives Stockbrokers less reason to make accurate predictions public and more reason to keep them to themselves.

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Re: CR - Stockbrokers [#permalink]

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New post 18 Dec 2008, 20:13
I too pick D. I was debating between A and D.. D seems better.

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Re: CR - Stockbrokers [#permalink]

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New post 18 Dec 2008, 20:41
another D

nothing else makes sense to me

can we have the OA
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Re: CR - Stockbrokers [#permalink]

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New post 18 Dec 2008, 22:25
D is the only one that makes sense. do you need detailed explanation?

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Re: CR - Stockbrokers [#permalink]

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New post 19 Dec 2008, 03:00
OA is D.

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Re: Investors should not rely on the predictions of stockbrokers [#permalink]

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New post 08 Mar 2015, 20:46
hey based on the conclusion which is investors should not rely on the predictions of the stockbrokers.. shouldn't it be B.

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Re: Investors should not rely on the predictions of stockbrokers [#permalink]

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New post 08 Mar 2015, 21:11
The answer should be D IMO.

The "assumption" in the statement is : The only reason why one wouldn't want to share his/her prediction is so as to prevent them from piggybacking on their ideas. Thus any one with access to a reasonably accurate forecast , would make definitely try to utilize these forecasts. Hence in order to protect one's returns , keeping a close-lid is likely to help.

Of course the assumption in this answer is that , the thug-investor is capable of exploiting your prediction to the hilt , in case he/she comes to know about it.

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Re: Investors should not rely on the predictions of stockbrokers [#permalink]

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New post 09 Mar 2015, 09:46
D for me too.
Other options can be easily eliminated.
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Re: Investors should not rely on the predictions of stockbrokers [#permalink]

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New post 12 Sep 2017, 00:18
(D) The fewer investors who have access to accurate stock market prediction, the more money those who have access to such predictions can make. - matches with - if the SB's sent out incorrect information and people followed it, SB's would get rich. Happens in the real world too; though I am following the GMAT rule of not letting the real world affect your answer choice! :)

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Re: Investors should not rely on the predictions of stockbrokers   [#permalink] 12 Sep 2017, 00:18
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