Reading Comprehension-12

DIRECTIONS (Q. 1-5): Below is given passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
PASSAGE
Investors today have more investment options than were available just a few years ago. Choice in any decision making is good in so far it provides variety differentiation and bench-marking. It could also, however, at times lead to clutter and “noise” if the options are mostly similar and undifferentiated. To make sense of this choice conundrum, it is imperative for an investor to define the objective – both returns and digestible risk and then identify the possible options. The investor also needs to select the mix and regularly monitor that objectives and investment outcomes remain aligned. Sounds simple, but can present the most confounding situations which multiplies with the quantum of wealth.
1. Investment of higher amount is relatively simpler than smaller amounts.

(A) The inference is ‘definitely true’, i.e. it properly follows from the statement of facts given.
(B) The inference is ‘probably true’, though not ‘definitely true’ in the light of the facts given.
(C) The ‘data are inadequate’, i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(D) The inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given.
(E) The inference is ‘definitely false’, i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Explnation:–
2. Investors need to critically evaluate the risk of each investment options.

(A) The inference is ‘definitely true’, i.e. it properly follows from the statement of facts given.
(B) The inference is ‘probably true’, though not ‘definitely true’ in the light of the facts given.
(C) The ‘data are inadequate’, i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(D) The inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given.
(E) The inference is ‘definitely false’, i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Explnation:–
3. Present-day investors need to use their judgment more critically before investing.

(A) The inference is ‘definitely true’, i.e. it properly follows from the statement of facts given.
(B) The inference is ‘probably true’, though not ‘definitely true’ in the light of the facts given.
(C) The ‘data are inadequate’, i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(D) The inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given.
(E) The inference is ‘definitely false’, i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Explnation:–
4. Multiple investment options of similar type help in making better investment decisions.

(A) The inference is ‘definitely true’, i.e. it properly follows from the statement of facts given.
(B) The inference is ‘probably true’, though not ‘definitely true’ in the light of the facts given.
(C) The ‘data are inadequate’, i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(D) The inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given.
(E) The inference is ‘definitely false’, i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Explnation:–
5. In the past, investors were generally guided by the fund managers.

(A) The inference is ‘definitely true’, i.e. it properly follows from the statement of facts given.
(B) The inference is ‘probably true’, though not ‘definitely true’ in the light of the facts given.
(C) The ‘data are inadequate’, i.e. from the facts given you cannot say whether the inference is likely to be true or false.
(D) The inference is ‘probably false’ though not ‘definitely false’ in the light of the facts given.
(E) The inference is ‘definitely false’, i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.

Explnation:–