Use the following three statements to answer this question: I. When and we know the return…

Use the following three statements to answer this question: I.
When and we know the return on Security A, we can predict the
return on Security B with certainty. II. Generally, security
returns display positive correlations with one another but they are
less than one, because all securities tend not to follow the
movements of the overall market. III. Any value of correlation less
than +1 provides a possibility of diversification.
Select one:
a. I is incorrect, II is correct, III is correct.
b. I and II are correct, III is incorrect.
c. I is correct, II is incorrect, III is correct.
d. I and II are incorrect, III is incorrect.