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.
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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.
(B) Incorrect. For the following reasons:
- In this option, it is not clear ‘for whom it is rare to hold at least one percent…’.
- Using ‘at least’ and ‘or more’ together is redundant; ‘at least’ includes the possibility of ‘more’.
- This option presents the two ideas using ‘and’, thus distorting the meaning by eliminating the cause and effect relationship of the original sentence.
- 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:
- The part after ‘and’ is an independent clause and thus needs to be connected using ‘comma+and’ with the previous independent clause.
- 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.
- Error no. 3 of option B.
(D) Incorrect. For the same pronoun error as in option C.
(E) Incorrect. For the following reasons:
- For the same pronoun error as in option C
- Error no. 3 of option B. The only difference is that this option uses semi-colon instead of ‘and’.