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


By offering lower prices and a menu of personal communications options，such as caller identification and voice mail，the new telecommunications company has not only captured customers from other phone companies but also forced them to offer competitive prices.

(A) has not only captured customers from other phone companies but also forced them
(B) has not only captured customers from other phone companies，but it also forced them
(C) has not only captured customers from other phone companies but also forced these companies (D) not only has captured customers from other phone companies but also these companies have been forced
(E) not only captured customers from other phone companies，but it also has forced them


In the first question "they" refers to "depressed property values" rather than investors. In the second problem for same kind of reference we need to replace "them" since it does not refer to phone companies explicitly.

I think it is explained by the case of the noun to which a pronoun is referring.
In the first question "they" is the subject case and it should refer to subject noun. The only contender for this position is "depressed property values". If a pronoun has to refer to "large investors" it has to use them.

In the second question, "them" is the object pronoun and the two antecedents for it are "customers" and "phone companies". In order to make the reference clear we need to explicitly repeat phone companies.

Please tell me if my understanding is correct.

Thanks is advance
Best Regards,
JOHN