medium · GMAT Verbal

A financial analyst is evaluating the performance of two investment funds, Alpha and Beta. Fund Alpha has historically outperformed Fund Beta in years of high market volatility. However, the analyst predicts that Fund Beta will be the better investment over the next three years because ________.

Which of the following most logically completes the passage?

  1. high market volatility is expected to decrease significantly over the next three years
  2. Fund Alpha's management team has remained unchanged for the last decade
  3. many investors prefer Fund Beta due to its lower initial entry fee
  4. Fund Alpha has consistently outperformed Fund Beta for the last five consecutive years
  5. the overall market is expected to grow at a steady rate of 4% annually

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