John, a Stock Broker, has a List of Companies Whose Shares He Recommends GMAT Critical Reasoning

Question: John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.

The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?

(A) How many companies are there on John’s list?
(B) Whether any other stock broker has also shown similar or better performance last year?
(C) What is the total number of companies listed on the stock exchange?
(D) Has John shown similar results in the previous years as well?
(E) Does John hire the services of someone else to identify stocks in which his clients should invest?

Explanation

“John, a stock broker, has a list of companies whose shares he recommends his clients to invest GMAT Critical Reasoning”- is a question of critical reasoning in a section of GMAT Verbal Reasoning. It examines the logical reasoning of the candidate in the test. The Critical Reasoning question type is used to measure critical business skills. GMAT Critical Reasoning questions assess a distinct set of qualities associated with logic. The students preparing for the GMAT will experience the argument analysis of Critical Reasoning for the first time to substantiate their logic.

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