Question

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

• A. Companies, rarely holding more than one percent
• B. Companies, and it is rare to hold at leastone percent or more
• C. Companies and rarely do they hold more than one percent
• D. Companies, so that they rarely hold more than one percent
• E. Companies; rarely do they hold one percent or more

Answer 1

The correct option is A Companies, rarely holding more than one percent

The sentence is correct as is, requiring no change. In option A, the clause 'rarely holding...' correctly modifies the subject. Hence, A is the answer. The reference of 'it' is unclear in option B. It is also unclear who is 'they' referring to in option C. Option D and E have similar errors. Therefore all these options are not acceptable.