galaxian wrote:1.The market has confidence that the firm will add back leverage to increase profits.
2.The market has confidence in the firm's ability to add back leverage to increase profits.
3.The market has confidence in the firm to add back leverage to increase profits.


EXPLANATION PLZ

galaxian wrote:1.The market has confidence that the firm will add back leverage to increase profits.
2.The market has confidence in the firm's ability to add back leverage to increase profits.
3.The market has confidence in the firm to add back leverage to increase profits.

I feel 2nd is correct over 3rd. market can have confidence on the ability of a firm, but not on th firm
Not sure about 1st.
and

1.What these scores tell us is that rigor is lacking in some schools.
2.What these scores tell us is that some schools lack of rigor.
3.What these scores tell us is that there's a lack of rigor in some schools.

I am not sure but i feel may be all three are correct because all are preceded by THAT. however lack of in 2nd option seems awkward.

May be we need expert comments
EXPLANATION PLZ

galaxian wrote:OA

1. 2
2. 2

Though am clueless regarding the explanation

Source : GMATClub

sameerballani wrote:1.What these scores tell us is that rigor is lacking in some schools.
2.What these scores tell us is that some schools lack of rigor.
3.What these scores tell us is that there's a lack of rigor in some schools.

1 is wrong because of tense
and 3 is wordy and awkward
so 2 is the answer.