Economic forces

[sam2304]

The economic forces which may affect the new public offering of stock include
sudden downturns in the market, hedging and other investor strategies for
preventing losses, loosening the interest rates in Washington and fearing that the
company may still be undercapitalized.
(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

OA after some discussions.

[shekhar.kataria]

The economic forces which may affect the new public offering of stock include
sudden downturns in the market, hedging and other investor strategies for
preventing losses, loosening the interest rates in Washington and fearing that the
company may still be undercapitalized.
(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and

(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

OA after some discussions.

This SC involves parallelism. Simply talk about four things that economic forces include.

1. sudden downturns in the market
2. hedging and other investor strategies for preventing losses
3. a loosening of the interest rates in Washington
4. a fear of the still undercapitalized company

Only D has the correct parallelism.
If you see above first two non underlined things doesn't include any verb so All goes out because in every option there is a verb being used whereas we need a noun + adjective.

IMO D ,. OA please??

[sam2304]

OA E

[shekhar.kataria]

R u sure about the OA. What is the source.

Orginal Explanation please if you have.

OA E

[hoji]

sure Answer is E
in SC, one can change original meaning only when the meaning is absurd or does not make any sense.
and in the problem at hand the meaning is clear!
here D changes OM, saying that fear is company's fear(absurd!) like "my fear" or "company's fear"
But original meaning is referring to the general fear that smth. might happen.

[sam2304]

R u sure about the OA. What is the source.

Orginal Explanation please if you have.

Source : Old paper based tests
There is no OE for these questions.

Hoji has done his part in explaining the question better.

[GmatKiss]

IMO: E

[sk8legend408]

The economic forces which may affect the new public offering of stock include
sudden downturns in the market, hedging and other investor strategies for
preventing losses, loosening the interest rates in Washington and fearing that the
company may still be undercapitalized.
(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

Loosening is incorrect...a loosening has to be used to maintain parallelism. Eliminate A and B.

A loosening...and fearing is not parallel. Eliminate C.

A fear of the still undercapitalized company is awkward and not as concise as a fear that the company may still be undercapitalized. Eliminate D.

The answer is E.