medium · GMAT Verbal

A venture capital partner argues that Fund A performed better than Fund B last year because Fund A returned 22% versus Fund B's 14%, and therefore the firm should allocate more new capital to strategies like Fund A's going forward.

To evaluate the partner's recommendation, it would be most useful to know which of the following?

  1. Whether Fund A's return reflects higher risk, not better strategy.
  2. The number of partners currently assigned to manage each fund.
  3. Whether Fund A's offices are located in the same city as Fund B's.
  4. How long each fund has existed since its founding.
  5. Whether either fund's name was recently changed for marketing purposes.

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