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While depressed property values can hurt some large investors,
they are potentially devastating for homeowners, whose
equity - in many cases represetng 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

[neoreaves]

While depressed property values can hurt some large investors,
they are potentially devastating for homeowners, whose
equity - in many cases represetng a life's savings - can plunge
or even disappear.

A. they are potentially devastating for homeowners, whoseCorrect: i know "they" might sound fishy and we might be tempted to think it refers to investors but lets keep it and look at other options
B. they can potentially devastate homeowners in that their we have the same issue with "they" but added to that "their" is confusing here because it can refer to either
C. for homeowners they are potentially devastating because their same problem as "their" in B
D. for homeowners, it is potentially devastating in that their "it" cant refer to a plural and it has no clear antecedent
E. it can potentially devastate homeowners, whose "it" same problem as D

[samarpan_bschool]

While depressed property values can hurt some large investors,
they are potentially devastating for homeowners, whose
equity - in many cases represetng 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

Hi, 'they' in the subject place of the main clause clearly refers to 'values' in the subordinate clause (while is used as a conjunction here). In all other options, 'their' seems to refer to 'homeowners', this making it wrong.
So A is the winner

[subgeeth]

can any one explain what whose and their refer to in the option A and C

[arpita@gurome]

The pronoun "they" refers to "property values" and the pronoun "whose" refers to the "home owners". (A) is succint and correct. (B), (C), and (D) are wordy and ambiguous. (E) is incorrect because of the pronoun-verb mismatch. "It" is a singular pronoun and does not agree with its antecedent "property values".