Professor A: We must make a strong moral statement against Country X’s policies. Only total divestment–the sale of all stock in companies that have factories or business offices in X–can do this. Therefore, the university should divest totally.
Professor B: Our aim should be to encourage X to change its policies. Partial divestment is the best way to achieve this aim. Therefore, the university should sell its stock only in companies that either sell goods to X’s government, or do the majority of their business in X, or treat their workers in X unfairly.
Which of the following, if true, would be evidence that the university would not be harmed economically if it followed Professor A’s recommendation.

Question

Examsnet · Accepted Answer

Correct Answer is :  The expected financial return to the university from stocks that the university could own under a policy of total divestment is approximately the same as the expected financial return from the same as the expected financial.

GMAT Verbal Reasoning Practice Test 3