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# Many investors base their choice between bonds and stocks on

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Director
Joined: 20 Apr 2005
Posts: 545
Many investors base their choice between bonds and stocks on  [#permalink]

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20 Jun 2005, 17:00
14
00:00

Difficulty:

75% (hard)

Question Stats:

37% (01:03) correct 63% (01:11) wrong based on 503 sessions

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497. Many investors base their choice between bonds and stocks on comparing bond yields to the dividends available on common stocks.

(A) between bonds and stocks on comparing bond yields to
(B) among bonds and stocks on comparisons of bond yields to
(C) between bonds and stocks on comparisons of bond yields with
(D) among bonds and stocks on comparing bond yields and
(E) between bonds and stocks on comparing bond yields with
Director
Joined: 27 Dec 2004
Posts: 851

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20 Jun 2005, 17:44
we have a 3/2 split because the correct linkage should be between thus we eliminate B and D.

Left with A, C and E
I pick C because comparsion is a noun and i think it's more grammatical to base something on another thing than a action. The verb comparing in A and E makes the sentence awkward IMO so i pick C
Intern
Joined: 30 May 2005
Posts: 28

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20 Jun 2005, 22:23
1
I will pick C.

A is out - "on comparing to" is not a correct form.
B is out - use of "among" between two items is not correct
D is out - same as b also
E isout - on comparing-- with

I think on comparision x with y should be the correct use.
Manager
Joined: 04 May 2005
Posts: 98
Location: Austin, Texas
Re: SC: bonds and stocks  [#permalink]

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21 Jun 2005, 09:05
2
2
WinWinMBA wrote:
497. Many investors base their choice between bonds and stocks on comparing bond yields to the dividends available on common stocks.

(C) between bonds and stocks on comparisons of bond yields with

I'd say (C) for three reasons reasons, three things are tested here.

1) compare with vs compare to (and by extension, comparison with/to)
...Either preposition may be correct, but it depends on usage. Compare with stresses differences, while compare to stresses similarities. Here, we're comparing differences between bond yields and stock dividends, something different enough so as to cause one to choose one investment versus the other.

2) between vs. among.
Here we're comparing two entities, stocks vs. bonds. So between is correct. (If you have any trouble with that, by the way, know that 'tween' comes from the same roots as 'two' and 'twice')

3) comparisons vs. comparing.
Just need a simple noun here to be the object of the preposition "on". Comparing can be a noun, but it sounds awkward here, whereas comparisons is perfect.

(C) gets all these right.
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21 Jun 2005, 09:05
E is correct

Make their choice....on comparison with???sounds awkward

make their choice ...on comparing with....sounds better..
Intern
Joined: 10 May 2012
Posts: 47
Many investors base their choice between bonds and stocks on  [#permalink]

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05 Aug 2012, 13:58
1
Many investors base their choice between bonds and stocks on comparing bond yields to the dividends available on common stocks.

A between bonds and stocks on comparing bond yields to

B among bonds and stocks on comparisons of bond yields to

C between bonds and stocks on comparisons of bond yields with

D among bonds and stocks on comparing bond yields and

E between bonds and stocks on comparing bond yields with

Ok . This is a old question from gmatclub. I was able to narrow it down to C and E. and after that i need a explanation for choosing the correct answer.
Intern
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05 Aug 2012, 18:38
I am no expert but I used the concept of modifier and meaning to reach to the solution on this.

(C) the phrase and idiomatic use of "on comparison of bonds"
(E)Here comparing is used as modifier which is modifying "bond" and in turn changes the meaning.

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Senior Manager
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05 Aug 2012, 21:02
2
Here is my take on it:

Firstly, according to MGMAT, the GMAT ignores the difference between 'compare to' and 'compare with'. (pg.148 Sentence Correction guide)

Many investors base their choice between bonds and stocks on comparing bond yields to the dividends available on common stocks.

A between bonds and stocks on comparing bond yields to
seems to imply the choice is based on the act of comparing rather than the comparison itself

B among bonds and stocks on comparisons of bond yields to
incorrect use of 'among'

C between bonds and stocks on comparisons of bond yields with OK
seems kosher: between is correctly used and the choice is based on the outcome of the comparison rather than the on act of comparing.

D among bonds and stocks on comparing bond yields and
incorrect use of 'among'

E between bonds and stocks on comparing bond yields with
seems to imply the choice is based on the act of comparing rather than the comparison itself
Intern
Joined: 15 Jan 2016
Posts: 33
Many investors base their choice between bonds and stocks on  [#permalink]

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16 Jan 2018, 06:57
macjas wrote:
Here is my take on it:

Firstly, according to MGMAT, the GMAT ignores the difference between 'compare to' and 'compare with'. (pg.148 Sentence Correction guide)

Many investors base their choice between bonds and stocks on comparing bond yields to the dividends available on common stocks.

A between bonds and stocks on comparing bond yields to
seems to imply the choice is based on the act of comparing rather than the comparison itself

B among bonds and stocks on comparisons of bond yields to
incorrect use of 'among'

C between bonds and stocks on comparisons of bond yields with OK
seems kosher: between is correctly used and the choice is based on the outcome of the comparison rather than the on act of comparing.

D among bonds and stocks on comparing bond yields and
incorrect use of 'among'

E between bonds and stocks on comparing bond yields with
seems to imply the choice is based on the act of comparing rather than the comparison itself

You mean to say: many investors base their choice... on comparisons of bond yields with dividends?

Posted from my mobile device
Director
Joined: 26 Aug 2016
Posts: 629
Location: India
Concentration: Strategy, Marketing
GMAT 1: 690 Q50 V33
GMAT 2: 700 Q50 V33
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WE: Information Technology (Consulting)
Many investors base their choice between bonds and stocks on  [#permalink]

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10 Jul 2018, 21:27
I have come across an interesting data:
For the structure

... based on {article} {subject} ...

Use of an article after the phrase "based on" does not depend on the phrase "based on" but on the ensuing {subject}.

The structure should be

... based on {{focuser} {subject}}

Where {focuser} helps to focus the subject. It may be an article, or pronoun, or adjective, or blank:

I made the decision based on Harry's input.
I made the decision based on the fact that the world is ending in 2 minutes.
My love for him is based on our mutual respect for each other.
My reaction to the situation was based on a shadow of paranoia.
Her thesis was based on distillation processing of sweet petroleum.
The news article was based on the frequent occurrences of school shootings.
The video was based on frequent burglary of banks situated on lonely strips.
Whether to use an article or not, depends on the generalization of the ensuing {subject}.

The focus of a subject sits on the continuum of two extremes.

on one extreme, totally generalized, indefinite and non-finite.
The idea was based on {houses burning at night}.
on the other extreme, being focused down to a specified instance.
The idea was based on the {house which was burned down last week}.
The picture was based on John's {house which was burned down last week}.
or somewhere in between on the continuum
I love listening to stories of {a woman making it to the head of an organization}.
The phrase "based on" should not even enter the picture (except to set the context) in deciding what {focuser}, if any, the {subject} might need.
Manager
Joined: 12 Mar 2017
Posts: 236
Location: India
Concentration: Strategy, General Management
GMAT 1: 630 Q49 V27
GPA: 4
Re: Many investors base their choice between bonds and stocks on  [#permalink]

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17 Aug 2018, 04:40
GMATNinja , daagh , AjiteshArun , gmatexam439

Please elaborate the POE for A and E . B and D are very easy to eliminate.

Regards
PB
Manager
Joined: 24 Mar 2017
Posts: 152
Location: India
GMAT 1: 680 Q49 V34
GPA: 3.98
Re: Many investors base their choice between bonds and stocks on  [#permalink]

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17 Aug 2018, 06:00
1
Prateek176

Not an expert but let me try this one.

Between is used when there are 2 entities and among when there are more than 2 entities. Hence, bonds and stocks require between

So B & D is gone

Now see the bold part and remove the fluff.

Many investors base their choice between bonds and stocks on on comparisons of bond yields to the dividends available on common stocks.
So as highlighted above "on" is a preposition and thus require a noun, so comparison should be used instead of ing form comparing.

OA E

Hope it helps.

Prateek176 wrote:
GMATNinja , daagh , AjiteshArun , gmatexam439

Please elaborate the POE for A and E . B and D are very easy to eliminate.

Regards
PB

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Intern
Joined: 11 Nov 2016
Posts: 9
GMAT 1: 700 Q50 V34
GPA: 1.9
Re: Many investors base their choice between bonds and stocks on  [#permalink]

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20 Aug 2018, 10:43
In this question important thing is that idiom Base on is followed by noun.
Ex: Based on "the evidence", I reached this conclusion.
Here Many investors base their choice between bonds and stocks on comparisons of/comparing bond yields to the dividends available on common stocks.
Therefore comparing is wrong here.
That leaves us with choice B and C. Further here Between is correct as investors' choice is between bonds and stocks. therefore eliminate B.
Difference between Compare to and compare with does not matter.
Hope this helps.
Manager
Joined: 12 Mar 2017
Posts: 236
Location: India
Concentration: Strategy, General Management
GMAT 1: 630 Q49 V27
GPA: 4
Re: Many investors base their choice between bonds and stocks on  [#permalink]

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29 Aug 2018, 10:50
arun6765 wrote:
Prateek176

Not an expert but let me try this one.

Between is used when there are 2 entities and among when there are more than 2 entities. Hence, bonds and stocks require between

So B & D is gone

Now see the bold part and remove the fluff.

Many investors base their choice between bonds and stocks on on comparisons of bond yields to the dividends available on common stocks.
So as highlighted above "on" is a preposition and thus require a noun, so comparison should be used instead of ing form comparing.

OA E

Hope it helps.

Prateek176 wrote:
GMATNinja , daagh , AjiteshArun , gmatexam439

Please elaborate the POE for A and E . B and D are very easy to eliminate.

Regards
PB

arun6765

Quote:
So as highlighted above "on" is a preposition and thus require a noun, so comparison should be used instead of ing form comparing.

Manager
Joined: 24 Mar 2017
Posts: 152
Location: India
GMAT 1: 680 Q49 V34
GPA: 3.98
Re: Many investors base their choice between bonds and stocks on  [#permalink]

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29 Aug 2018, 21:20
Prateek176 wrote:
arun6765 wrote:
Prateek176

Not an expert but let me try this one.

Between is used when there are 2 entities and among when there are more than 2 entities. Hence, bonds and stocks require between

So B & D is gone

Now see the bold part and remove the fluff.

Many investors base their choice between bonds and stocks on on comparisons of bond yields to the dividends available on common stocks.
So as highlighted above "on" is a preposition and thus require a noun, so comparison should be used instead of ing form comparing.

OA E

Hope it helps.

Prateek176 wrote:
GMATNinja , daagh , AjiteshArun , gmatexam439

Please elaborate the POE for A and E . B and D are very easy to eliminate.

Regards
PB

arun6765

Quote:
So as highlighted above "on" is a preposition and thus require a noun, so comparison should be used instead of ing form comparing.

Prateek176

All this and other nitty gritty of Gmat you can consolidate from Manhattan SC Guide.
For later quick reference you can download SC flashcard which are available on GC forum.
https://gmatclub.com/forum/sentence-cor ... 04883.html
_________________

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Re: Many investors base their choice between bonds and stocks on &nbs [#permalink] 29 Aug 2018, 21:20
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