Statement and Conclusion

Directions to SolveIn each question below is given a statement followed by two conclusions numbered I and II. You have to assume everything in the statement to be true, then consider the two conclusions together and decide which of them logically follows beyond a reasonable doubt from the information given in the statement.Give answer:
  • (A) If only conclusion I follows
  • (B) If only conclusion II follows
  • (C) If either I or II follows
  • (D) If neither I nor II follows and
  • (E) If both I and II follow.

Q1: 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 Either I or II follows

B Only conclusion I follows

C Both I and II follow

D Neither I nor II follows

E Only conclusion II follows

ANS:B - Only conclusion II follows

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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