As I am trying to figure this out. I think it will be helpful to understand what the difference is between a 600-700 CR and a 700-800 CR question. I am copying a couple of questions from the MGMAT test to analyze this. Can any experts pitch in please?
Between this one
Investment Advisor: It is well-known that investing in mutual funds reduces portfolio risk through diversification. It is also true that past investment performance is often related to future investment prospects. Therefore, to help my clients earn high returns with low risk, I select a group of mutual funds that meet the client’s objectives and then invest the client’s assets in the fund that has delivered the highest returns in this group over the past 2 years.
Which of the following statements, if true, would demonstrate a serious flaw in the approach of the Investment Advisor?
Managers of many mutual funds that have delivered the highest returns over the past several years have already used up their best investment ideas and are unlikely to sustain this level of performance in the future.
Mutual funds span a wide spectrum of investment styles and performance objectives and no single fund is suitable for every investor.
Many individual investors choose to manage their own portfolios rather than consult an investment advisor.
The funds that have had the strongest past performance tend to continue to outperform other funds with similar objectives for many years in the future.
The number of clients served by the investment advisor has declined by nearly 50% over the past 5 years.
and this one
For the last five years, the XYZ Courier Company has made regular delivery trips between Town A and Town B. The average time taken by the company’s drivers to drive the round trip between the two towns, excluding the time taken for loading, unloading, and delivery, over that period has been 80 minutes. John, a driver for XYZ, needs to make a personal trip between the two towns; he figures that he should allow approximately 80 minutes for the round trip.
Which of the following, if true, does not call John’s conclusion into question?
The route between Town A and Town B has been plagued by increasing congestion over the last five years, as the area's population has doubled during that time.
Most of XYZ’s courier vehicles are heavy trucks, for which speed limits are lower than for passenger vehicles.
Many of the packages carried by XYZ between Town A and Town B are large, high-security packages, for which the processes of loading, unloading, and delivery can take up to half the length of the trip itself.
John will make his personal trip at an hour when XYZ does not make delivery trips.
Before a freeway was built between Town A and Town B two years ago, the only routes between the two towns were state highways with multiple traffic lights and reduced-speed downtown zones.