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Statements: Our securities investments carry market risk. Consult your investment advisor or agent before investing. Conclusions: 1 One should not invest in securities. 2 The investment advisor calculates the market risk with certainty.

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  • Statement and Conclusion - Section 1
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1. 

Statements: Our securities investments carry market risk. Consult your investment advisor or agent before investing.

Conclusions:

  1. One should not invest in securities.
  2. The investment advisor calculates the market risk with certainty.
[A]. Only conclusion I follows
[B]. Only conclusion II follows
[C]. Either I or II follows
[D]. Neither I nor II follows
[E]. Both I and II follow

Answer: Option B

Explanation:

Investment in securities involves risk. This does not mean that one should not invest in securities. So, I does not follow. Since the statement advises one to consult investment advisor before investing, so II follows.

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  • Statement and Conclusion - Section 1

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