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Depressed property values (2nd edition question)

Expert replies
by hutch27 » Fri Jan 18, 2013 11:43 am
While depressed property values can hurt some large investors, [they are potentially devastating for homeowners, whose] equity- in many cases representing a life's savings- can plunge or even disappear.

A)
B) They can potentially devastate homeowners in that their
C) for homeowners they are potentially devestating, because their
D) for homeowners, it is potentially devestating in that their
E) it can potentially devastate homeowners, whose

Oa isA

I was just wondering how the word they refers exactly to depressed property values. I thought it was ambiguous because of the two antecedents, property values and large investors.

Thanks!!!! :-)
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Source: — Sentence Correction |

by Kasia@EconomistGMAT » Fri Jan 18, 2013 12:12 pm
It is true that "they" could refer to both of these nouns. However, it is clear from the context that "they" refers to "depressed property values" as this is the subject of the sentence whereas "large investors" is the object of the sentence - not grammatically parallel with "they."
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by hutch27 » Fri Jan 18, 2013 4:08 pm
I see now why that was the best answer but I'm still confused with how "they" unambiguously refers to the subject. I thought all pronouns have to have 1 clear antecedent.
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by pankajjindal » Fri Jan 18, 2013 4:35 pm
While depressed property values can hurt some large investors, they are potentially devastating for homeowners, whose equity- in many cases representing a life's savings- can plunge or even disappear.

Still confused as to how the sentence construction is ok ?
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