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Investors Need to Critically Evaluate the Risk of Each Investment Option. - Logical Reasoning

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MCQ

A passage is given below followed by several inferences. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
Investors today have more investment options than were available just a few years ago. Choice in any decision-making is good in so far it provides variety, differentiation and benchmarking. lt could also, however, at times lead to clutter and "noise" if the options are mostly similar and undifferentiated. To make sense of this choice conundrum, it is imperative for an investor to define objective - both returns and digestible risk and then identify the possible options. The investor also needs to select the mix and regularly monitor that objectives and investment outcomes remain aligned. Sounds simple, but can present the most confounding situation which multiplies with the quantum of wealth.
lnvestors need to critically evaluate the risk of each investment option.

Options

  • lf the inference is 'definitely true'.

  • lf the inference is 'probably true'.

  • lf the 'data provide in inadequate'.

  • lf the inference is 'probably false'.

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Solution

lf the inference is 'definitely true'.

Explanation:

Refer to the line ‘To make sense of this choice... then identify possible options.’ Hence, the inference is definitely true, rendering 'definitely true' the correct answer.

Concept: Statement and Assumption (Entrance Exam)
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