Which Statement(s) Is/are TRUE? I

Multiple Choice

Which statement(s) is/are TRUE? I. A leveraged account magnifies both gains and losses.
II) The risk of highly leveraged investments is that a small decrease in price can wipe out one's account.
III) Subprime mortgage packages were seen as low-risk investments, leading many investors to borrow money at the low prevailing interest rates to purchase greater quantities.

A) I only
B) II only
C) I and II
D) I, II, and III