Advertisement: Last year, Factorial Mutual Fund continued its strong record of investment performance. Investors who included Factorial Fund in their portfolios realized an average capital gain of 15% across all of their investment assets, nearly double the market return. Therefore, investors interested in high returns should consider adding Factorial Mutual Fund to their portfolios.
The claim in the advertisement above is based on which of the following assumptions?
A. Factorial Fund is one of the oldest and largest mutual funds in the investment industry.
B. A substantial part of the 15% portfolio appreciation was attributable to the returns of Factorial Fund and this level of fund's performance is likely to persist in the future.
C. Last year, Factorial Fund outperformed all other funds with similar style and investment objectives.
D. The Fund is suitable to all investors.
E. The fees charged by Factorial Fund are among the lowest in the investment industry.
OA B
Source: Manhattan Prep
Advertisement: Last year, Factorial Mutual Fund continued it
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OPTION A - INCORRECT
This isn't the assumption to which the claim is built on because there is no given information or evidence to show that factorial fund is one of the oldest and largest mutual funds in the investment industry.
OPTION B - CORRECT
The claim is based on this assumption because the argument claims that investor who include the factorial fund in their portfolios realised an average capital gain of 15% across all their investment assets. In addition, this option believes the funds performance is likely to persist in the future due to the fact the investors can consider adding the factorial mutual fund to their portfolios.
OPTION C - INCORRECT
There is no prove of this in the argument, so, it can't serve as the assumption to which the argument is based on.
OPTION D - INCORRECT
It's possible that the fund is suitable to all workers, but this isn't the main concern of the argument.
OPTION E - INCORRECT
This isn't the assumption to which the argument is built on because it is not concerned with the fees charged by factorial fund.
This isn't the assumption to which the claim is built on because there is no given information or evidence to show that factorial fund is one of the oldest and largest mutual funds in the investment industry.
OPTION B - CORRECT
The claim is based on this assumption because the argument claims that investor who include the factorial fund in their portfolios realised an average capital gain of 15% across all their investment assets. In addition, this option believes the funds performance is likely to persist in the future due to the fact the investors can consider adding the factorial mutual fund to their portfolios.
OPTION C - INCORRECT
There is no prove of this in the argument, so, it can't serve as the assumption to which the argument is based on.
OPTION D - INCORRECT
It's possible that the fund is suitable to all workers, but this isn't the main concern of the argument.
OPTION E - INCORRECT
This isn't the assumption to which the argument is built on because it is not concerned with the fees charged by factorial fund.