Free Practice Question
CR · Critical Reasoning
sub-505
Assumptions
Advertisement: This year, Apex Growth Fund has reported impressive investment results. Investors who included Apex Fund in their portfolios achieved an average capital gain of 18% across all their investment assets, significantly higher than the average market return. Therefore, investors seeking substantial returns should consider adding Apex Growth Fund to their portfolios.
The claim in the advertisement above is based on which of the following assumptions?
Answer Choices
Correct answer marked belowA
Apex Fund is one of the most reputable mutual funds in the investment sector.
A significant portion of the 18% portfolio growth was due to the performance of Apex Fund and this level of performance is expected to continue.
Correct
C
This year, Apex Fund outperformed all other funds with similar investment strategies.
D
The Fund is appropriate for every type of investor.
E
The management fees for Apex Fund are among the lowest in the mutual fund industry.
See the full step-by-step explanation
You can see the correct answer above. Sign in for free to unlock the complete worked solution.
Track your performance and improve
Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.
Explanation
Preview
Official Explanation
Official
The advertisement claims that investors who included Apex Growth Fund in their portfolios achieved an average capital gain of 18%, which is significantly higher than the market return. For this claim to be valid, it must be assumed that a substantial part of this capital gain is attributable to the performance of the Apex Fund itself and that such performance is…
Read the full explanation
Sign in for free to see the complete step-by-step solution to this question.
Comments
4
Sign in to join the discussion
A
AnkitApr 19, 2025
thanksss
N
NelseeMar 9, 2025
Thank for sharing!!!
E
ElouanOct 28, 2024
finally understood this
S
SarthakApr 17, 2024
thank you very much!
What this question tests
What it tests
Whether you can identify the unstated assumption a critical-reasoning argument depends on.
Common trap
Picking an option that strengthens the argument or is merely relevant instead of one that is required.
Details
Difficulty
sub-505
Type
CR