hard · GMAT Verbal
A financial advisor recommends that clients invest in index funds rather than actively managed funds, noting that 90% of actively managed funds fail to outperform the market average over any ten-year period. However, some investors argue that this statistic is misleading because it includes many funds that are managed by inexperienced individuals. They claim that if one only considers funds managed by 'elite' professionals with at least twenty years of experience, the success rate is much higher. This counter-argument would be weakened if it were found that ________.
Which of the following most logically completes the passage?
- most 'elite' professionals charge significantly higher management fees than less experienced managers
- several inexperienced managers have outperformed the market average in each of the last three years
- 'elite' managers are more likely than inexperienced managers to invest in highly volatile tech stocks
- the performance of 'elite' managers over ten years is also subject to the same 90% failure rate as the broader group
- index funds were originally developed by academic researchers rather than financial professionals
Sign up free to see the explanation and track your rank →
More GMAT Verbal practice
- A gardener says: 'All roses in this garden require daily wat… — What is the role of the st
- What is the conclusion?
- What logical role does the first sentence play in the researcher's argument?
- What logical role do the first two statements play?
- Which of the following is the conclusion?
- What is the conclusion?
- Which statement is the conclusion?
- What is the conclusion?