Question

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

Option A
Option B
Option C
Option D
Option E

(This question is from Official Guide. Therefore, because of copyrights, the complete question cannot be copied here. The question can be accessed at GMAT Club)

Solution

Sentence Analysis

The sentence says that a mutual fund that has billions of dollars in assets will invest that money in hundreds of companies. Then, the sentence expresses the result of this clause using a verb-ing modifier. The result of the clause is that the mutual fund rarely holds more than 1% of the shares of any company.

The sentence is logical and grammatical. There is no error in the original sentence.

Option Analysis

(A) Correct.

(B) Incorrect. For the following reasons:

  1. In this option, it is not clear ‘for whom it is rare to hold at least one percent…’.
  2. Using ‘at least’ and ‘or more’ together is redundant; ‘at least’ includes the possibility of ‘more’.
  3. This option presents the two ideas using ‘and’, thus distorting the meaning by eliminating the cause and effect relationship of the original sentence.
  4. Stylistically, the part after ‘and’ is such an indirect way (using a placeholder ‘it’) of expressing the idea communicated directly in the original sentence.

(C) Incorrect. For the following reasons:

  1. The part after ‘and’ is an independent clause and thus needs to be connected using ‘comma+and’ with the previous independent clause.
  2. Logically, we know that ‘they’ should refer to ‘mutual fund’. However, grammatically it cannot since ‘they’ is plural and ‘mutual fund’ is singular. So, we have a pronoun error.
  3. Error no. 3 of option B.

(D) Incorrect. For the same pronoun error as in option C.

(E) Incorrect. For the following reasons:

  1. For the same pronoun error as in option C
  2. Error no. 3 of option B. The only difference is that this option uses semi-colon instead of ‘and’.

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