1000 CR test 9 Q 14

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1000 CR test 9 Q 14

by Rashmi1804 » Sun Apr 05, 2009 7:50 am
Corporate officers and directors commonly buy and sell, for their own portfolios, stock in their own corporations. Generally, when the ratio of such inside sales to inside purchases falls below 2 to 1 for a given stock, a rise in stock prices is imminent. In recent days, while the price of MEGA Corporation stock has been falling, the corporation’s officers and directors have bought up to nine times as much of it as they have sold.

The facts above best support which of the following predictions?

(A) The imbalance between inside purchases and inside sales of MEGA stock will grow even further.
(B) Inside purchases of MEGA stock are about to cease abruptly.
(C) The price of MEGA stock will soon begin to go up.
(D) The price of MEGA stock will continue to drop, but less rapidly.
(E) The majority of MEGA stock will soon be owned by MEGA’s own officers and directors.

OA : C

Could anyone please help understand the question ?? the part of the Q i highlighted here...

thanks!!
Source: — Critical Reasoning |

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by scoobydooby » Sun Apr 05, 2009 9:32 am
the bolded part means: internal purchase=9 times internal sales
=> internal purchase/internal sales =9/1
=> internal sales/internal purchase=1/9 <2
=> stock price rises

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by Rashmi1804 » Sun Apr 05, 2009 12:43 pm
Ohh thanks a lott !! :)

i was actually reading " bought as much ....." as " bRought as much..."
read it hundred times.....and evrytime the same mistake :P

GOD save me in the exam!

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by lunarpower » Wed Apr 08, 2009 3:41 am
this is actually a really easy question. remember that this is a "draw the conclusion" question, on which you MUST pick an answer choice that can be RIGOROUSLY DEDUCED from the information at hand, with NO ADDITIONAL ASSUMPTIONS.

the only prediction mentioned in the entire passage is "a rise in stock prices is imminent".
therefore, since ANY other prediction would require outside assumptions, this is the only prediction that you're allowed to make:: that stock prices will soon go up.

all 5 choices are predictions.

only (c) is the single prediction that you're actually allowed to make.
therefore, (c) it is.
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by samanthaJ79 » Sun May 15, 2016 5:09 am
My vote for C

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by graem83d » Sun May 15, 2016 7:10 am
So I feel C is a better option