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# Professor A: We must make a strong moral statement against

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Director
Joined: 20 Sep 2006
Posts: 653

Kudos [?]: 132 [0], given: 7

Professor A: We must make a strong moral statement against [#permalink]

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11 Sep 2008, 12:57
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Professor A: We must make a strong moral statement against Country Xs policies. Only total divestmentthe sale of all stock in companies that have factories or business offices in Xcan do this. Therefore, the university should divest totally.
Professor B: Our aim should be to encourage X to change its policies. Partial divestment is the best way to achieve this aim. Therefore, the university should sell its stock only in companies that either sell goods to Xs government, or do the majority of their business in X, or treat their workers in X unfairly.

Q. Which of the following, if true, would be evidence that the university would not be harmed economically if it followed Professor As recommendation.

A. Very few of the companies in which the university owns stocks sell goods to Xs government.

B. Most companies that have factories or business offices in X and in which the university owns stock actually do little of their business in X.

C. Some companies that have factories or business offices in X and in which the university owns stock have instituted fair treatment policies for their workers in X at very little additional cost to the companies.

D. The expected financial return to the university from stocks that the university could own under a policy of total divestment is approximately the same as the expected financial return from the same as the expected financial.

E. If the university sold large blocks of stock under a policy of total divestment, the prices of the stocks of the companies whose stocks were sold would probably decrease somewhat.

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SVP
Joined: 17 Jun 2008
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12 Sep 2008, 06:14
1
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rao_1857 wrote:
D. The expected financial return to the university from stocks that the university could own under a policy of total divestment is approximately the same as the expected financial return from the same as the expected financial.

Is there some typo? Although, I chose D, but wanted to be sure that there is no invisible trap.

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Senior Manager
Joined: 09 Oct 2007
Posts: 463

Kudos [?]: 52 [0], given: 1

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11 Sep 2008, 19:45
Must be D:

A. Very few of the companies in which the university owns stocks sell goods to Xs government.
Doesn't say wheter the university will lose anything after selling stock.

B. Most companies that have factories or business offices in X and in which the university owns stock actually do little of their business in X.
Same as above

C. Some companies that have factories or business offices in X and in which the university owns stock have instituted fair treatment policies for their workers in X at very little additional cost to the companies.
Out of A's scope

D. The expected financial return to the university from stocks that the university could own under a policy of total divestment is approximately the same as the expected financial return from the same as the expected financial.

E. If the university sold large blocks of stock under a policy of total divestment, the prices of the stocks of the companies whose stocks were sold would probably decrease somewhat.
And thus, will lose some money.

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VP
Joined: 17 Jun 2008
Posts: 1378

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11 Sep 2008, 19:45
rao_1857 wrote:
Professor A: We must make a strong moral statement against Country Xs policies. Only total divestmentthe sale of all stock in companies that have factories or business offices in Xcan do this. Therefore, the university should divest totally.
Professor B: Our aim should be to encourage X to change its policies. Partial divestment is the best way to achieve this aim. Therefore, the university should sell its stock only in companies that either sell goods to Xs government, or do the majority of their business in X, or treat their workers in X unfairly.

Q. Which of the following, if true, would be evidence that the university would not be harmed economically if it followed Professor As recommendation.

A. Very few of the companies in which the university owns stocks sell goods to Xs government. -> this actually leads to financial problem to university since its selling the shares and end result is not met since few companies sell goods

B. Most companies that have factories or business offices in X and in which the university owns stock actually do little of their business in X. -> same as above

C. Some companies that have factories or business offices in X and in which the university owns stock have instituted fair treatment policies for their workers in X at very little additional cost to the companies. -> divestment is not necessary and moreover here divesting leads to loss shares by university

D. The expected financial return to the university from stocks that the university could own under a policy of total divestment is approximately the same as the expected financial return from the same as the expected financial. => this holds good since if at all totally divested they get the same financial returns IMO

E. If the university sold large blocks of stock under a policy of total divestment, the prices of the stocks of the companies whose stocks were sold would probably decrease somewhat. -> if stocks decrease again university's rest of the stocks are in loss

_________________

cheers
Its Now Or Never

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Intern
Joined: 07 Jun 2010
Posts: 17

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13 Jun 2010, 06:31
same here ,wanted to know if D is a typo

(D) meant to say -->sale of stocks=financial return, thus no harm?

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Senior Manager
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Schools: UT at Austin, Indiana State University, UC at Berkeley
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13 Jun 2010, 19:38
IMO D
_________________

Never give up,,,

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VP
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18 Jun 2010, 18:36
D for me.

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GMAT Club Legend
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Re: Professor A: We must make a strong moral statement against [#permalink]

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10 Oct 2013, 07:42
Hello from the GMAT Club VerbalBot!

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Re: Professor A: We must make a strong moral statement against   [#permalink] 10 Oct 2013, 07:42
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