Logical Reasoning Quiz
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A bank advertises its new savings account as 'risk-free' because deposits up to a certain amount are insured by the government. Since any investment that is risk-free is better than an investment that involves risk, the bank's savings account is a better investment than a diversified stock portfolio. Therefore, anyone seeking the best investment should choose this savings account. But the advertisement never claims returns will exceed inflation.
The reasoning above is flawed for which of the following reasons?
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