Q:

Direction: In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow(s) for pursuing.
 Statement: The new methodology to calculate foreign ownership limit that global index provider MSCI has proposed could lead to a sharp outflow from Indian stocks.
 Courses of action:
 I. The overall weight of India in the MSCI Emerging Markets (EM) index is expected to fall by 25 basis points to 8.55 per cent if the proposal goes into effect.
 II. MSCI will seek to exclude the shares being offered through global and American depository receipts
 (GDRs, ADRs) while calculating foreign ownership limits.
 III. While determining the weight of a company, MSCI will take into consideration parameters including the foreign inclusion factor (FIF), which determines the total proportion of shares of a company that offshore investors can buy from exchanges.

• 1
  Only III follows
• 2
  Both I and III follow
• 3
  Both II and III follow
• 4
  Only I follows
• 5
  All follow