SC : Volatility of a balanced portfolio

[bhanupra]

SC source : Peterson/BeatTheGmat


The volatility of a balanced portfolio of stocks and bonds, less than 80 percent of the overall stock market.



a. The volatility of a balanced portfolio of stocks and bonds, less than 80 percent of the overall stock market.

b. A balanced portfolio of stocks and bonds is less than 80 percent as volatile as the overall stock market.

c. A balanced portfolio of stocks and bonds is less than 80 percent as volatile as that of the overall stock market.

d. Volatility is less than 80 percent for a balanced portfolio of stocks and bonds compared to the overall stock market.

e. The volatility of a balanced portfolio of stocks and bonds is less than 80 percent of the overall stock market.


OA is B. But I don't understand why C is wrong? As per my understanding in C, the comparision is between 'portfolio of stocks and bonds and portfolio of overall stock market'. Then as per C, 'that' is correct right?

Ron Please help

[awesomesquare]

The comparision is between "portfolio of stocks and bonds" and "the overall stock market"

[mschwrtz]

I the future, please post such questions to the General Verbal forum (to which this question will now be moved), rather than to a MGMAT-specific forum.

Twoo points on top of awesomesquare's:

1) The meaning of B might be more clear with the addition of a single word: "A balanced portfolio of stocks and bonds is less than 80 percent as volatile as the overall stock market is." I don't mean to suggest that B is wrong without that addition--it's not--or that the addition doesn't change the structure of the sentence--it does--I just offer this as a heuristic, because bhanupra seemed to misjudge the original meaning.
2) Choice A doesn't look much like any choice I've ever seen on a real GMAT. I mean, I've seen fragments, but they were dressed up a little.