medium · LSAT Logical Reasoning

The last three times the company hired a CEO from outside the industry, its stock price plummeted. Clearly, hiring a CEO from within the industry is necessary to ensure the company's financial health.

Which one of the following is an assumption on which the argument depends?

  1. The earlier stock declines were attributable to those CEOs' lack of industry experience rather than to other factors.
  2. The company has already identified several promising candidates from within the industry.
  3. No outsider CEO has ever succeeded at any company in any industry.
  4. Hiring an industry-insider CEO would guarantee that the stock price rises.
  5. Industry-insider CEOs are generally less expensive to recruit than outsiders.

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