Para Jumble - Origin of Modern Finance

CAT 2005 Slot 1 · VARC · Medium · VARC

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The sentences given below, when properly sequenced, form a coherent paragraph. Choose the most logical order of sentences from among the given choices.

A. This is now orthodoxy to which I subscribe – up to a point. B. It emerged from the mathematics of chance and statistics. C. Therefore the risk is measurable and manageable. D. The fundamental concept: Prices are not predictable, but the mathematical laws of chance can describe their fluctuations. E. This is how what business schools now call modern finance was born.

  1. A.

    ADCBE

  2. B.

    EBDCA

  3. C.

    ABDCE

  4. D.

    DCBEA

Answer

B

Explanation

E introduces modern finance. B explains 'It emerged from mathematics...'. D defines the fundamental concept. C follows logically ('Therefore the risk is measurable...'). A concludes with the author's stance on this orthodoxy. Sequence: EBDCA.

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