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Statement: Investments in securities carry market risk; consult investment advisor. Conclusions: I. One should not invest in securities. II. The investment advisor calculates market risk with certainty. Which follows?
AOnly conclusion I follows
BOnly conclusion II follows
CEither I or II follows
DNeither I nor II follows
Answer & Solution
Correct answer: D. Neither I nor II follows
1. I overgeneralises: the statement warns of risk, not that one should never invest. So I does not follow.
2. II is unsupported: the statement says consult an advisor, not that the advisor knows risk with certainty.
3. Therefore neither I nor II follows.
_Source: KMAT Karnataka 2021 PYQ Q.53_