Financial advisors commonly describe market volatility as ______. Nevertheless, investors who employ diversification strategies, maintain long-term pe...
GMAT Craft and Structure : (Structure) Questions
Financial advisors commonly describe market volatility as ______. Nevertheless, investors who employ diversification strategies, maintain long-term perspectives, and regularly rebalance their portfolios often achieve stable returns even during turbulent periods.
Which choice completes the text with the most logical and precise word or phrase?
predictable
unmanageable
temporary
beneficial
Step 1: Decode and Map the Passage
Part A: Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| 'Financial advisors commonly describe market volatility as' |
|
| '[MISSING WORD/PHRASE]' |
|
| 'Nevertheless, investors who employ diversification strategies, maintain long-term perspectives, and regularly rebalance their portfolios often achieve stable returns even during turbulent periods.' |
|
Part B: Provide Passage Architecture & Core Elements
Main Point: While financial advisors may characterize market volatility negatively, investors who use sound strategies can still achieve stable returns.
Argument Flow: The passage sets up a contrast between how financial professionals describe market volatility and what actually happens when investors employ proper strategies.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- The missing word/phrase should describe how advisors view market volatility
- It must contrast effectively with the 'Nevertheless' statement that follows
- Since 'Nevertheless' introduces the idea that investors CAN achieve stable returns through good strategies, the missing descriptor should suggest volatility is challenging or difficult to deal with
predictable
- Describes volatility as 'predictable'
- Doesn't create meaningful contrast with the 'Nevertheless' statement
unmanageable
- Describes volatility as 'unmanageable'
- Creates perfect contrast with 'Nevertheless, investors often achieve stable returns'
- The logic flows: advisors say it's unmanageable, BUT investors prove they can manage it successfully
temporary
- Describes volatility as 'temporary'
- Doesn't create strong contrast with achieving stable returns
beneficial
- Describes volatility as 'beneficial'
- Actually supports rather than contrasts with achieving stable returns