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John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past one year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.
The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?
  • a)
    How many companies are there on John’s list?
  • b)
    Whether any other stock broker has also showed similar or better performance last year?
  • c)
    What is the total number of companies listed on the stock exchange?
  • d)
    Has John shown similar results in the previous years as well?
  • e)
    Does John hire the services of someone else to identify stocks in which his clients should invest?
Correct answer is option 'B'. Can you explain this answer?
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John, a stock broker, has a list of companies whose shares he recommen...
Understanding John's Claim
John claims to be an expert stock picker because 16 out of 20 companies he recommends have appreciated by 100% or more over the past year. However, to evaluate the validity of his claim, it's crucial to compare his performance with other brokers.
Importance of Comparison
- Performance Benchmark: Knowing whether other brokers have achieved similar or better results provides context to John's success. If many brokers have similar or superior performance, John's claims may not stand out, suggesting that his expertise might not be as exceptional as he presents.
- Market Trends: If the stock market as a whole experienced significant growth, it could indicate that many stocks appreciated, not necessarily due to John's expertise.
- Investor Decision Making: Investors need to assess whether John’s stock picks are genuinely better than those of competitors. A robust track record compared to others is essential for building trust.
Why Other Options Are Less Relevant
- Number of Companies on John's List: This does not directly indicate his expertise or the quality of his recommendations.
- Total Companies Listed on the Exchange: This figure does not provide insight into John's specific performance.
- Past Performance: While it is helpful, it doesn't address the current competitive landscape.
- Hiring Practices: Understanding if John hires others does not directly impact the assessment of his stock-picking ability.
In conclusion, evaluating John's performance against other brokers is crucial in determining whether investors should trust him with their funds.
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John, a stock broker, has a list of companies whose shares he recommen...
This choice aligns with the pre-thinking and evaluates the potential impact on tea prices. If the domestic demand for tea in tea-importing countries decreases significantly, it could offset the effect of India's lower tea production and may not result in a significant increase in tea prices on the international market. Therefore, it is a relevant and important factor to consider.
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As Internet marketing has matured, it has driven two trends: a narrower focus on pitching specific consumer groups and a more robust effort to measure the outcomes of marketing campaigns. In the pre-Internet world, advertisers were content to pay for television commercials whose audience was relatively broad and whose effect was not easily quantifiable. While a company might use viewership ratings to get general data about the size and demographics of the audience for its commercials, there was no way to measure the extent to which these commercials translated into actual sales.In contrast, many companies are now moving their marketing dollars away from traditional advertising outlets towards Internet-based campaigns that can target specific consumer groups and quantify the return on marketing investments. For example, pay-per-click search engines allow companies to pay for small text advertisements that are displayed only when users search for specific words relevant to the products and services sold by that company.A company is charged only when a consumer clicks on the ad and is directed to the company’s website, thereby ensuring that the company’s advertising dollars are spent capturing consumers that demonstrate some interest in its offerings. Further, using sophisticated web-analytic technology, companies can track a consumer’s online behavior and determine the exact amount of any online purchases made.Though hailed as more cost-effective, Internet advertising has its limits. Proponents of print media argue that newspaper ads more effectively promote brand awareness and thereby provide better value. Further, fraud, intense competition, and the rise of ancillary services—such as firms that companies must hire to navigate complex webtracking tools—render Internet marketing more costly than some companies realize.Q.The author of the passage would be most likely to agree with which of the following statements?

American companies may find the solution to their performance related problems in their own backyard. A recently conducted independent study shows that in the business world, social and political skills have become the real key to getting ahead in organisations, skills that successful managers use to their advantage. The study found out that successful managers, those who get promoted relatively quickly vis--vis effective managers, perform day to day activities that are more or less dissimilar to the ones conducted by effective managers or those who have satisfied, committed subordinates, in addition to high performing units. Accordingly, it comes as no surprise that networking, which consists of socializing or politicking and interacting with others, was one activity that, out of the core four activities among the plethora of activities performed by managers, topped the list for successful managers but was ranked the lowest in the list of activities performed by the effective ones. Indeed the findings of the study do not negate the reality that there are managers who strike a balance between the activities performed by both types of managers and hence are successful and effective at the same time, but the meagre percentage such managers formed of the studys sample, barely ten percent, affirms the general divide between successful and effective managers.These findings clearly belie the traditional assumption typically suggested by formal personnel policies that promotions are based purely on performance. In effect, the studys implications affirm the cynical, yet what now seems real, view that people who are not necessarily the most accomplishing in terms of performing well in the other three key activity areas, namely communication, traditional management, and human resource management, are being promoted to the top level. Therefore, American companies looking to improve their performance and productivity need to ensure that formal rewards, especially promotions, are tied to performance. This way companies will be promoting a work-culture that turns effective managers in to successful managers and gives the currently successful managers a chance to effectively focus on productivity and not just on socializing and politicking.Which of the following is mentioned in the passage?

Read the passage and answer the question given below.American companies may find the solution to their performance related problems in their own backyard. A recently conducted independent study shows that in the business world, social and political skills have become the real key to getting ahead in organisations, skills that successful managers use to their advantage. The study found out that successful managers, those who get promoted relatively quickly vis-à-vis effective managers, perform day to day activities that are more or less dissimilar to the ones conducted by effective managers or those who have satisfied, committed subordinates, in addition to high performing units. Accordingly, it comes as no surprise that networking, which consists of socializing or politicking and interacting with others, was one activity that, out of the core four activities among the plethora of activities performed by managers, topped the list for successful managers but was ranked the lowest in the list of activities performed by the effective ones. Indeed the findings of the study do not negate the reality that there are managers who strike a balance between the activities performed by both types of managers and hence are successful and effective at the same time, but the meagre percentage such managers formed of the study’s sample, barely ten percent, affirms the general divide between successful and effective managers.These findings clearly belie the traditional assumption typically suggested by formal personnel policies that promotions are based purely on performance. In effect, the study’s implications affirm the cynical, yet what now seems real, view that people who are not necessarily the most accomplishing in terms of performing well in the other three key activity areas, namely communication, traditional management, and human resource management, are being promoted to the top level. Therefore, American companies looking to improve their performance and productivity need to ensure that formal rewards, especially promotions, are tied to performance. This way companies will be promoting a work-culture that turns effective managers in to successful managers and gives the currently successful managers a chance to effectively focus on productivity and not just on socializing and politicking.Q. Which of the following is mentioned in the passage?

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American companies may find the solution to their performance related problems in their own backyard. A recently conducted independent study shows that in the business world, social and political skills have become the real key to getting ahead in organisations, skills that successful managers use to their advantage. The study found out that successful managers, those who get promoted relatively quickly vis--vis effective managers, perform day to day activities that are more or less dissimilar to the ones conducted by effective managers or those who have satisfied, committed subordinates, in addition to high performing units. Accordingly, it comes as no surprise that networking, which consists of socializing or politicking and interacting with others, was one activity that, out of the core four activities among the plethora of activities performed by managers, topped the list for successful managers but was ranked the lowest in the list of activities performed by the effective ones. Indeed the findings of the study do not negate the reality that there are managers who strike a balance between the activities performed by both types of managers and hence are successful and effective at the same time, but the meagre percentage such managers formed of the studys sample, barely ten percent, affirms the general divide between successful and effective managers.These findings clearly belie the traditional assumption typically suggested by formal personnel policies that promotions are based purely on performance. In effect, the studys implications affirm the cynical, yet what now seems real, view that people who are not necessarily the most accomplishing in terms of performing well in the other three key activity areas, namely communication, traditional management, and human resource management, are being promoted to the top level. Therefore, American companies looking to improve their performance and productivity need to ensure that formal rewards, especially promotions, are tied to performance. This way companies will be promoting a work-culture that turns effective managers in to successful managers and gives the currently successful managers a chance to effectively focus on productivity and not just on socializing and politicking.Each of the following can be inferred from the passage EXCEPT

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John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past one year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer?
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John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past one year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past one year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. Over the past one year, the share price of 20 companies listed on the stock exchange has appreciated by 100% or more and 16 of these companies are part of John’s list. Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer?.
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Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of John, a stock broker, has a list of companies whose shares he recommends his clients to invest in. 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Thus John claims that he is an expert at picking stocks and that more and more investors should park their funds with him to get the maximum return on their investment.The answer to which of the following questions would be most important in determining whether an investor should park his funds with John?a)How many companies are there on John’s list?b)Whether any other stock broker has also showed similar or better performance last year?c)What is the total number of companies listed on the stock exchange?d)Has John shown similar results in the previous years as well?e)Does John hire the services of someone else to identify stocks in which his clients should invest?Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice GMAT tests.
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