Statement: The regulatory authority has set up a review committee to find out the reasons for unstable stock prices.
Assumptions:
1. The investors may regain confidence in stock market by this decision.
2. The review committee has the expertise to find out the causes for volatility in the stock market.
Answer: E
Correct answer: Both I and II are implicit
Setting up the committee presupposes that it is competent to find the causes - assumption II - and the point of announcing such a step is to reassure the market, which is assumption I. Both are implicit.
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