LSAT Explanation PT 33, S3, Q8: Most people invest in the stock

LSAT Question Stem

If the statements in the passage are true, which one of the following must also be true? 

Logical Reasoning Question Type

This is a Must Be True question. 

Correct Answer

The correct answer to this question is A. 

LSAT Question Complete Explanation

Let's analyze the passage first. It discusses different types of investors in the stock market and their approaches to investment. It mentions that most people invest without doing any research, some rely on their broker's advice, some rely on hunches, some do research but also rely on their broker or hunches, and only a few always do their own research. Despite these various approaches, the passage states that a majority of investors make a profit.

The question type is a Must Be True (MBT) question, which asks us to identify the statement that must be true based on the information provided in the passage.

Let's examine each answer choice:

a) Some people who make a profit on their investments in the stock market do so without doing any research of their own.

Since most people invest without doing research and a majority of investors make a profit, there must be an overlap between these two groups. Therefore, it must be true that some people who make a profit do so without doing any research.

b) Most people who invest in the stock market either rely solely on their broker or make decisions based merely on hunches.

This statement is too strong. The passage tells us that some people rely on their broker's advice and some rely on hunches, but it doesn't state that most people do either of these things. We cannot conclude that this statement must be true.

c) Some people who do investment research on their own, while just as often relying on their broker or on hunches, make a profit in the stock market.

Although the passage mentions people who do research but also rely on their broker or hunches, we cannot conclude that they necessarily make a profit. This statement is too specific and not necessarily true.

d) Most people who invest in the stock market without doing any research of their own make a profit.

This statement is too strong. Although most people invest without doing research and a majority of investors make a profit, we cannot conclude that most people who invest without research make a profit. It could be that only some of them make a profit.

e) Most people who rely solely on their broker rather than on hunches make a profit in the stock market.

The passage doesn't provide enough information to support this statement. We know that some people rely on their broker's advice, but we cannot conclude that most of them make a profit.

Based on our analysis, the correct answer is A. It must be true that some people who make a profit on their investments in the stock market do so without doing any research of their own, as there is an overlap between the group of people who invest without doing research and the group of investors who make a profit.