Question

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. Both I and II follow

Answer 1

Answer:

B. Only conclusion II follows

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.