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Discussion

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: B

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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