medium · GMAT Verbal
Argument: A company's stock price rose by 12% on the day it announced a new CEO. The board of directors concluded that investor confidence in the new leader's track record was the cause of the price increase.
Which of the following would be most useful to determine in order to evaluate the board's conclusion?
- Whether the new CEO had previously worked for one of the company's main competitors.
- Whether the previous CEO had resigned voluntarily or had been asked to leave by the board.
- Whether the overall stock market index for the company's sector also rose significantly on the same day.
- Whether the magnitude of the stock's rise exceeded the average single-day gain the company's shares had posted over the prior year.
- Whether the company intends to release its next scheduled quarterly earnings report ahead of its usual reporting date.
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