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 insider candidates from within the industry to fill the position.
  3. No outsider CEO has ever succeeded at any company in any industry, regardless of that particular firm's circumstances.
  4. Hiring an industry-insider CEO would, all by itself, guarantee that the company's stock price rises soon afterward.
  5. Industry-insider CEOs are generally far less expensive for a company both to recruit and to retain than outsiders are.

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