Question

Q. Statement: Mutual funds carry market risk. Consult your investment advisor or agent before investing.

Assumptions:
(I) One should not invest in Mutual Funds.
(II) The investment advisor can reasonably estimate the market risk

• A. Only assumption I is implicit
• B. Only assumption II is implicit
• C. Either I or II is implicit
• D. Neither I nor II is implicit
• E. Both I and II are implicit

Answer 1

The correct option is B Only assumption II is implicit

Investment in Mutual funds involves risk but this does not mean that one should not invest in them. So (I) does not follow. Since the statement advises one to consult investment advisor before investing, so (II) follows.