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Nightfury14
Joined: 13 Sep 2015
Last visit: 02 May 2023
Posts: 119
Status:In the realms of Chaos & Night
Schools: ISB '20 INSEAD Jan '19
Schools: ISB '20 INSEAD Jan '19
Posts: 119
Updated on: 24 Jan 2019, 05:12
Originally posted by Nightfury14 on 18 Jul 2016, 05:47.
Last edited by Bunuel on 24 Jan 2019, 05:12, edited 3 times in total.
Last edited by Bunuel on 24 Jan 2019, 05:12, edited 3 times in total.
Edited the question.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
27% (02:40) correct
73%
(02:41)
wrong
based on 2614
sessions
History
Date
Time
Result
Not Attempted Yet
A minority but influential investor in Quell has recently claimed that the company's stock is undervalued, citing as evidence the announced plan of Quell's CEO, who is the majority shareholder, to sell the company in a short period of time. According to the minority investor, the CEO is permitting or even encouraging an undervalued stock price so that he may get the company sold and liquidate his stake in the company. By accusing the CEO of having personal motives allow the stock price to become distorted, however, the minority investor is guilty of the precise accusation that he himself is making. This investor is known for using his influence to attempt to sway public opinion and meddle in otherwise well-calibrated deals in order to drive up share prices for his personal financial benefit.
In the argument given, the two boldfaced portions play which of the following roles?
(A) The first states the position that the argument as a whole opposes; the second provides reasoning to undermine the support for the position being opposed.
(B) The first states the position that the argument as a whole opposes; the second is reasoning that has been used to support the position being opposed.
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
(D) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning.
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
In the argument given, the two boldfaced portions play which of the following roles?
(A) The first states the position that the argument as a whole opposes; the second provides reasoning to undermine the support for the position being opposed.
(B) The first states the position that the argument as a whole opposes; the second is reasoning that has been used to support the position being opposed.
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
(D) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning.
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
sayantanc2k
Expert
Joined: 14 Dec 2013
Last visit: 09 Dec 2022
Posts: 2,391
Location: Germany
GMAT 1: 780 Q50 V47
WE:Corporate Finance (Pharmaceuticals and Biotech)
Expert reply
bballallstar6464
I agree. I could not find any indication / reasoning that the passage as a whole opposes (or supports) the claim that " the company's stock is undervalued". The minority investor thinks that the stock is undervalued. But there is no statement in the passage that shows that the author of the passage opposes (or aligns with) the minority investor on this point.
All we can deduce is that the author blames the investor for the same reason that the investor blames the CEO - that the investor is trying to drive up the stock price. It is not clear whether the author agrees ( or disagrees) that the stockprice is undervalued.
Nightfury14
What does the author say:
He says: Minority investor is claiming that the stock is undervalued because CEO wants to sell it. So prices are being kept down to get a buyer.
He further says: Th investor is responsible for same guilt (trying to manipulate pricing for personal advantage). The investor is known to pump up stock value (in otherwise balanced deals) for financial gains.
The usage of "... in otherwise well-calibrated deals..." tells us that the author feels that the price may not be lower than the right price. He feels that the investor is trying to drive up the price (more than the fair price) for financial gains.
The reason he writes the argument is to tell that the investor is doing what the investor is accusing the CEO of doing. So the second bold statement is the conclusion of the argument.
The first bold statement is a position taken by the investor. It is not reasoning given in favour of or against anything. Hence (D) and (E) are both wrong. Now, the argument may not directly say that the price is fair but it is opposing the investor and the first bold sentence is the position of the investor. So the argument is against the position stated.
The best of the given options is (C)
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General Discussion
Schools: Johnson '19
Posts: 2
Can anyone explain the logic behind selecting C? I do not see how the argument as a whole is "opposing that the stock is undervalued".
sayantanc2k
Expert
Joined: 14 Dec 2013
Last visit: 09 Dec 2022
Posts: 2,391
Location: Germany
GMAT 1: 780 Q50 V47
WE:Corporate Finance (Pharmaceuticals and Biotech)
Expert reply
abhishek2804
Option D is incorrect, because the underlined portion itself is a position (claimed by the investor) and not a reasoning that supports some other position.
The OA mentioned is C, although I am not convinced about the same. Please see my post above.
abrakadabra21
Joined: 07 Sep 2014
Last visit: 10 Nov 2017
Posts: 240
Concentration: Finance, Marketing
Schools: Yale '18 ISB '18 (D) Judge"18
Schools: Yale '18 ISB '18 (D) Judge"18
Posts: 240
Updated on: 01 Oct 2017, 00:23
Originally posted by abrakadabra21 on 19 Aug 2016, 03:25.
Last edited by abrakadabra21 on 01 Oct 2017, 00:23, edited 1 time in total.
Last edited by abrakadabra21 on 01 Oct 2017, 00:23, edited 1 time in total.
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
the company's stock is undervalued => is not reasoning.
C is the answer
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole.
the company's stock is undervalued => is not reasoning.
C is the answer
AlexGenkins1234
Joined: 18 Sep 2015
Last visit: 17 May 2023
Posts: 56
GMAT 1: 610 Q47 V27
GMAT 2: 650 Q48 V31
GMAT 3: 700 Q49 V35
WE:Project Management (Healthcare/Pharmaceuticals)
GMAT 3: 700 Q49 V35
Posts: 56
Nightfury14
- The first is a CONCLUSION that a rival of the author concludes.
- The author later accuses his rival in doing the same thing that his rival protest against.
- So:
* the first - is a conclusion that the argument opposes.
* the second - is the main conclusion of this text.
A - X - 1st part correct; 2nd part - wrong- this is not reasoning but a conclusion.
B - X - 1st part correct; 2nd part - wrong- this is not reasoning but a conclusion.
C - V - 1st part correct; 2nd part correct;
D - X -1st part wrong - As in E.
E - X -1st part wrong - this is not a reasoning, but a conclusion. reasoning could be a deduction that supports the main conclusion (Intermediate Conclusion/ or general statement/belief)
Posts: 577
Nightfury14
It is C because the author does not agree with the claim/view that the stock is undervalued. He attributes ulterior motive to the person making that claim. The second boldface is easier to understand.
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Srinivasan Vaidyaraman
arvind910619
Joined: 20 Dec 2015
Last visit: 18 Oct 2024
Posts: 800
Status:Learning
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE:Engineering (Manufacturing)
Products:
Can any one explain why option B is wrong .
And any specific strategy for Boldface questions.
And any specific strategy for Boldface questions.
arvind910619
If you can determine if a statement is premise or conclusion in the given argument while reading , you will be close to the answer.
sayantanc2k
This is similar to the OG 2017 question number 625. Here is the link.
https://gmatclub.com/forum/a-prominent- ... 10451.html
Posts: 12
Hi GMATNinja VeritasKarishma
Could you please explain why option E is incorrect and option C is correct because the there nothing the argument which states that the boldface 1 is opposed by the author.
Thanks !
Could you please explain why option E is incorrect and option C is correct because the there nothing the argument which states that the boldface 1 is opposed by the author.
Thanks !
Nightfury14
OFFICIAL EXPLANATION:
Reading the question: the boldfaced text immediately gives away how this question will work. We don't need to analyze the argument; we need only identify the logical role of each sentence.
Sentence
Starts With.../Includes...
Function
1st
"the company's stock is undervalued"
Opinion (bold), evidence
2nd
"According to the minority investor"
Elaboration
3rd
"the minority investor is guilty"
Contrary opinion
4th
"known for using his influence"
Evidence for 2nd opinion
Creating a filter: The first bold portion gives an opinion, and the second one gives a contrary opinion. The author of the argument believes the second opinion. That's our filter.
Applying the filter: we look for these results in the answer choices. Judging the answer choices just up to the semicolons, we keep (A) through (C) and we toss out (D) and (E); the first statement is a position, not reasoning. Looking at the latter half for choices (A) through (C), we target (C), the only one that identifies the second boldfaced portion as an opinion. To confirm this, we reconfirm that the last sentence of the paragraph is not an opinion. The phrase "this investor is known" highlights that sentence as mutually agreed upon and hence a fact.
The correct answer is (C).
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Pre-thinking -
The first boldface - the company's stock is undervalued - is a claim by "A minority but influential investor.". Then the investor further explains his claim.
The author's language conveys that he/she will contrast the claim, and that's what has happened - the use of "however."
The second boldface - "guilty of the precise accusation that he himself is making" is the main conclusion.
Option elimination -
(A) The first states the position that the argument as a whole opposes (correct); the second provides reasoning to undermine the support for the position being opposed (the second is the conclusion and not reasoning...) - wrong
(B) The first states the position that the argument as a whole opposes (correct); the second is reasoning that has been used to support the position being opposed (the second is the conclusion and not reasoning. Moreover it's not at all supporting the "claim" being opposed).
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole. - correct per our pre-thinking.
(D) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning. - The first is not a support for a position, it is a position
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole. - The first is not a support for a position, it is a position
The first boldface - the company's stock is undervalued - is a claim by "A minority but influential investor.". Then the investor further explains his claim.
The author's language conveys that he/she will contrast the claim, and that's what has happened - the use of "however."
The second boldface - "guilty of the precise accusation that he himself is making" is the main conclusion.
Option elimination -
(A) The first states the position that the argument as a whole opposes (correct); the second provides reasoning to undermine the support for the position being opposed (the second is the conclusion and not reasoning...) - wrong
(B) The first states the position that the argument as a whole opposes (correct); the second is reasoning that has been used to support the position being opposed (the second is the conclusion and not reasoning. Moreover it's not at all supporting the "claim" being opposed).
(C) The first states the position that the argument as a whole opposes; the second states the conclusion of the argument as a whole. - correct per our pre-thinking.
(D) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second provides information to undermine the force of that reasoning. - The first is not a support for a position, it is a position
(E) The first is reasoning that has been used to support a position that the argument as a whole opposes; the second states the conclusion of the argument as a whole. - The first is not a support for a position, it is a position
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