(I)In a Competitive Capital Market,private Investors Have a Strong Incentive

Multiple Choice

(I) In a competitive capital market,private investors have a strong incentive to evaluate projects carefully and allocate their funds toward those projects expected to yield the highest rates of return.
(II) Profitable projects will tend to increase both the wealth of the investor and of the nation.

A) I is true;II is false.
B) I is false;II is true.
C) Both I and II are true.
D) Both I and II are false.