Invt Banks

the argument concludes that the long term success is dependent on "unbiased" analysis. So if any choice that has anything to do with "biased" analysis will be the answer. Choice A fits into that category with "recommendations" of the managers.

ildude02 wrote:the argument concludes that the long term success is dependent on "unbiased" analysis. So if any choice that has anything to do with "biased" analysis will be the answer. Choice A fits into that category with "recommendations" of the managers.

Any taker for this one I am confused.

maihuna wrote:

ildude02 wrote:the argument concludes that the long term success is dependent on "unbiased" analysis. So if any choice that has anything to do with "biased" analysis will be the answer. Choice A fits into that category with "recommendations" of the managers.

Any taker for this one I am confused.

IMO A does it's job pretty well.

If u keenly observe option B seems to be a boobytrap!!
In the argument it is clearly mentioned that only "sometimes" the analyst shall send unfavorable reports on the financial health of companies for whom they are raising capital to other clients who wish to make investments.

Going by this we cant conclude or opt B.that would be something like generalising the whole idea about reports!

gmatmachoman [Govardhan ],

Ron said B is the answer but all the places people have posted OA: A. No idea, what is the source. I am still confused over A and B.

https://www.manhattangmat.com/forums/inv ... 10031.html

Following is my perspective:
I would go with option (B) as the answer choice - what Ron has said.
The best way to judge the argument would be to personalize it and imagine ourselves to be in the Investment bank.
(A) This is something that will be true - but I don't see it a reason that will hinder the long term success of the Investment Bank. On the contrary, it seems to foster a good reputation of the Investment Bank in the eyes of entrepreneurs who want to raise money for their ventures.
The Bank analysts' are the ones who are responsible for sending the misleading reports to other clients. The Managers are the ones who are responsible of arranging capital for clients. In the argument, it's stated that IB raise the money as advantageously as possible, however the analysts discourage those who wish to make investments in the new venture. The Most probable Interpretation of this scenario, is that the analysts want to build the reputation of the IB as the sole money raiser for the venture, which might go with building its reputation in the market. So choice (A) is the obvious result of such practice followed and would not hinder the long term progress of the IB.

Choice (B): Imagine I am a third person (not an analyst) and want to use the reports (dubious though) of the IB's analysts to raise money for a client. I will not be successful in this attempt, as the reports themselves are misleading. So (B) makes a perfect sense here.

(C): Note the question stem here. It says that if the "above statements are true". It doesn't say anything like "if the following statements are true". So I think I should be wary of making any unjust assumptions (apart from the Most real world/obvious ones) in the answer choices. We don't know whether an IB1 interaction with IB2, would be superficial (like with any other client) or they would share the analysis behind the reports. So (C) is ruled out, in comparison to (B).

Thanks
Prashant