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The following appeared in a newsletter offering advice to investors.
"Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food stores. Since many of the food products currently marketed by Old Dairy Industries are high in fat and cholesterol, the company's sales are likely to diminish greatly and company profits will no doubt decrease. We therefore advise Old Dairy stockholders to sell their shares, and other investors not to purchase stock in this company."
Write a response in which you discuss what questions would need to be answered in order to decide whether the advice and the argument on which it is based are reasonable. Be sure to explain how the answers to these questions would help to evaluate the advice.
"Over 80 percent of the respondents to a recent survey indicated a desire to reduce their intake of foods containing fats and cholesterol, and today low-fat products abound in many food stores. Since many of the food products currently marketed by Old Dairy Industries are high in fat and cholesterol, the company's sales are likely to diminish greatly and company profits will no doubt decrease. We therefore advise Old Dairy stockholders to sell their shares, and other investors not to purchase stock in this company."
Write a response in which you discuss what questions would need to be answered in order to decide whether the advice and the argument on which it is based are reasonable. Be sure to explain how the answers to these questions would help to evaluate the advice.
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