While depressed property values can hurt some large investors, they are potentially devastating for homeowners, whose equity - in many cases respresenting a life's savings- can plunge or even disappear

A)
B) they can potentially devastate homeowners in that their
C) for homeowners they are potentially devastating, because their
D) for homeowners, it is potentially devastating in that their
E) it can potentially devastate homeowners, whose

The OG answer is A. Can you please explain how the pronoun "they" clearly refers to property values. It could refer to investors as well. Thats what caused me to not consider choice A.

Thanks,

(A) is correct because of the following rule:

When a sentence begins with one clause (in this case "while depressed property values can hurt some large investors"), a pronoun in the following clause (in this case "they are potentially devastating for...") is presumed to refer to the subject of the first clause, as long as that pronoun agrees in number and gender with the subject of the first clause.

The subject of the first clause here is "depressed property values", whereas "some large investors" is the direct object of the first clause. Thus "they" refers to "depressed property values".

Likewise, in the sentence "Although Albert hates Bernardo, he loves Cassandra", the pronoun "he" clearly refers to "Albert", not "Bernardo".

Jad,

In the following question:

60. According to a recent poll, owning and living in a freestanding house on its own land is still a goal of a majority of young adults, like that of earlier generations.
A) like that of earlier generations
B )as that for earlier generations
C )just as earlier generations did
D )as have earlier generations
E) as it was of earlier generations

on the same grounds as stated below, In option E "IT" refers to the SUbject "Owining.......land"
Saurabh Malpani

That's correct.