Consider these two passages: Over the past five years, Stock 1 had a great P/E r
ID: 3143337 • Letter: C
Question
Consider these two passages:
Over the past five years, Stock 1 had a great P/E ratio; therefore, it also has had a Morningstar rating of 5 stars and the value of the stock will increase in value over the next five years.
Over the past five years, Stock 1 had a great P/E ratio and has had a Morningstar rating of 5 stars; therefore, the value of the stock will increase in value over the next five years.
Which of the following provides the best description of these two passages?
a. Neither passage contains an argument.
b. They both contain an argument, and (i) is stronger than (ii).
c. They both contain an argument, and (ii) is stronger than (i).
d. They both contain an argument, and they are both equally strong.
e. They both contain an argument, but there are no grounds for assessing the relative strengths of these arguments.
Explanation / Answer
Consider
P: Over the past five years, Stock 1 had a great P/E ratio.
Q: it had a Morningstar rating of 5 stars
R: the value of the stock will increase in value over the next five years.
In Passage 1.
1. If P then Q and R
2. P
3. Therefore, Q and R
In Passage 2.
1. If P and Q then R
2. P and Q
3. Therefore, R
e. They both contain an argument, but there are no grounds for assessing the relative strengths of these arguments.