Use the Following Three Statements to Answer This Question

Multiple Choice

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 however they are less than one; this is 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.

A) I is incorrect, II is correct, III is correct.
B) I is correct, II is incorrect, III is correct.
C) I and II are incorrect, III is incorrect.
D) I and II are correct, III is incorrect.