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An investment account may hold money in a variety of forms, including stocks, bonds, mutual funds, or currently uninvested cash reserves. Recent allegations, of insider trading within the pharmaceutical industry have prompted rumors of a market-wide sell-off as those holding stock in non-related industries react negatively to the news. Evidence suggests, however, that there has been no such sell-of, because financial records reveal no unusual increase in the total uninvested cash reserves of investment accounts since the allegations were made public.
The argument relies on which one of the following assumptions?
A) People who held stock in industries unrelated to pharmaceuticals purchased low-priced pharmaceutical stock at unusually highly rates in response to the news.
B) Those who sold their pharmaceuticals stocks and purchased new stocks tended to choose cheaper stocks and buy fewer shares
C) Those holding non-pharmaceutical stocks are skeptical about the possibility of those stocks' values increasing in the near future.
D) Data has not yet been released as to the total volume of trading since the allegations were made public.
E) People who hold stock in industries unrelated to pharmaceuticals are not transferring their money into less risky investments such as bonds and mutual funds.
OA E
Source: Magoosh
The argument relies on which one of the following assumptions?
A) People who held stock in industries unrelated to pharmaceuticals purchased low-priced pharmaceutical stock at unusually highly rates in response to the news.
B) Those who sold their pharmaceuticals stocks and purchased new stocks tended to choose cheaper stocks and buy fewer shares
C) Those holding non-pharmaceutical stocks are skeptical about the possibility of those stocks' values increasing in the near future.
D) Data has not yet been released as to the total volume of trading since the allegations were made public.
E) People who hold stock in industries unrelated to pharmaceuticals are not transferring their money into less risky investments such as bonds and mutual funds.
OA E
Source: Magoosh
