Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statements : Our securities investments carry market risk. Consult your investment advisor or agent before investing. Conclusions : I. One should not invest in securities. II. The investment advisor calculates the market risk with certainty.

Only conclusion I follows
Only conclusion II follows
Either I or II follows
Neither I nor II follows E. Both I and II follow

The correct answer is: D. Neither I nor II follows.

The statement “Our securities investments carry market risk” means that there is a possibility that the value of the investment will go down as well as up. The statement “Consult your investment advisor or agent before investing” means that you should get professional advice before investing in securities.

Conclusion I, “One should not invest in securities,” does not follow from the statement. The statement only says that there is a risk of losing money, not that it is certain that you will lose money. It is possible to make money from investing in securities, even if there is risk involved.

Conclusion II, “The investment advisor calculates the market risk with certainty,” also does not follow from the statement. The statement does not say anything about the investment advisor’s ability to calculate risk. It is possible that the investment advisor is very good at calculating risk, but it is also possible that they are not.

In conclusion, neither conclusion I nor II follows from the statement.