LSAT 102 – Section 4 – Question 11

LSAT 102 - Section 4 - Question 11

June 1998

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Question
QuickView		 Type Tags Answer
Choices		 Curve Question
Difficulty		 Psg/Game/S
Difficulty		 Explanation
PT102 S4 Q11
+LR
Except +Exc
Weaken +Weak
Sampling +Smpl
Value Judgment +ValJudg
A
3%
161
B
3%
160
C
10%
160
D
78%
167
E
5%
159
143
153
163
 +Harder 146.127 +SubsectionMedium

Taken together, some 2,000 stocks recommended on a popular television show over the course of the past 12 years by the show’s guests, most of whom are successful consultants for multibillion-dollar stock portfolios, performed less successfully than the market as a whole for this 12-year period. So clearly, no one should ever follow any recommendations by these so-called experts.

Summarize Argument
The author concludes that no one should take the advice of so-called expert stock consultants. This is because 2,000 of the stocks such experts recommended on a TV show over the last 12 years performed worse than the market did over the same period.

Notable Assumptions
The author assumes that these 2,000 stocks are reflective of what the consultants recommend in general, without considering other stocks that may have also been recommended and performed well. The author also assumes that performance over this certain 12-year period is sufficient to draw conclusions about the consultants’ abilities to predict which stocks will do well. Perhaps the period in question was anomalous for some reason, or perhaps the stocks won’t pay off until a later date.

A
Taken together, the stocks recommended on the television show performed better than the market as a whole for the past year.
Evidently, it’s sometimes a good idea to take the consultants’ advice. Last year, their stocks outperformed the market.
B
Taken together, the stocks recommended on the television show performed better for the past 12-year period than stock portfolios that were actually selected by any other means.
Since you can’t buy the market itself, you have to put together a portfolio. Those portfolios all performed even worse than those selected by the consultants, meaning their advice was worthwhile.
C
Performance of the stocks recommended on the television show was measured by stock dividends, whereas the performance of the market as a whole was measured by change in share value.
The way the stocks and the market were measured differed. This means a comparative conclusion can’t be drawn about them.
D
Performance of the stocks recommended on the television show was measured independently by a number of analysts, and the results of all the measurements concurred.
Several different measurements confirmed the stocks recommended on the TV show performed worse than the market. This certainly doesn’t weaken the claim that the so-called expert consultants aren’t giving good advice.
E
The stock portfolios for which the guests were consultants performed better for the past 12-year period than the market as a whole.
Even if the recommended stocks didn’t all do well together, the consultants were nevertheless able to create decent portfolios using different combinations of stocks. This suggests their advice may be worthwhile.

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LSAT PrepTest 102 Explanations

Section 1 - Reading Comprehension

Section 2 - Logical Reasoning

Section 3 - Logical Reasoning

Section 4 - Logical Reasoning

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