Critical reasoning — statements and conclusions on investment risk advisories: From the statement 'Our securities investments carry market risk. Consult your investment advisor or agent before investing', determine which conclusion logically follows regarding whether one should avoid securities altogether or whether an advisor can calculate market risk with certainty

Given data

• Statement: 'Our securities investments carry market risk. Consult your investment advisor or agent before investing.'
• Conclusions under test:
  • I: One should not invest in securities.
  • II: The investment advisor calculates the market risk with certainty.

Concept/Approach

Evaluate each conclusion strictly from the given statement. Advisory language about risk and consultation does not equal prohibition or certainty. Logical follow-through depends on what is explicitly or necessarily implied, not on external knowledge.

Step-by-Step calculation/logic
1) The statement acknowledges market risk and recommends consulting an advisor. It does not say 'do not invest', merely 'be aware and seek advice' ⇒ Conclusion I does not follow.2) Advising consultation does not imply advisors can compute risk with certainty. Markets are uncertain; the statement claims nothing about certainty ⇒ Conclusion II does not follow.

Verification/Alternative

If the speaker intended 'do not invest', the statement would prohibit investing, not encourage informed decision-making. If certainty were possible, the advisory would state so; it does not.

Common pitfalls

• Confusing 'risk disclosure' with 'investment ban'.
• Reading 'consult' as 'guarantee' or 'certainty'.

Final Answer
Neither I nor II follows.