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S&P 500 index

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by hmboy17 » Sun May 17, 2009 8:00 pm
S&P 500 index has increased by alomost 13 % over the past 5 years. the avg large-cap mutual fund has lost 3.6 % of it's value over the same time
period. Since index funds are signeficantly less expensive then the avg large-cap mutual fund, the prduent investor will forego placing money in
large-cap mutual fund in favor of better performing index fund.

Argument above is based on -
1. A appeal to common beliefs and values.
2. a distortion od statistical data to benefit a bais.
3. An endeavor to rebut a generalization by using an exceptional case
4. parallel reasoning between past and future
5. a similar argument that uses a cicular reasoning.
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Source: — Critical Reasoning |

Re: S&P 500 index

by Minheequang » Sun May 17, 2009 11:38 pm
Very abstract question, IMO B

S&P 500 index has increased by almost 13 % over the past 5 years. the avg large-cap mutual fund has lost 3.6 % of it's value over the same time
period. Since index funds are significantly less expensive then the avg large-cap mutual fund, the prudent investor will fore-go placing money in
large-cap mutual fund in favor of better performing index fund.

Argument above is based on -
1. A appeal to common beliefs and values -->it's all about statistic, no common beliefs are presented. It's rather a personal belief
2. a distortion old statistical data to benefit a bias -->I think it's the most appropriate choice but it's hard to explain
3. An endeavor to rebut a generalization by using an exceptional case-->no, this is an action based on the implied generalization that funds' index will increase at anytime in the future
4. parallel reasoning between past and future--> not enough clues to make up a parallel reasoning, although it seems to be so
5. a similar argument that uses a circular reasoning -->no circular reasoning here
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by scoobydooby » Mon May 18, 2009 2:39 am
would go for D

it uses past 5 years statistics to predict investor reaction=>assumes past performance will be repeated in the future.
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by rahulg83 » Mon May 18, 2009 6:28 am
I second scoobydooby, should be D

OA please?
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by goelmohit2002 » Mon May 18, 2009 7:19 am
IMO D...

Believes that history will be repeated.
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by vinaynp » Mon May 18, 2009 7:45 am
IMO D.
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by hmboy17 » Mon May 18, 2009 8:02 am
OA is D
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by mason77 » Sun May 15, 2016 2:30 pm
I am pretty sure that the right answer is D.
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