The sentences given below, when properly sequenced, form a coherent paragraph. Each sentence is labeled with a letter. Choose the most logical order of sentences from among the given choices to construct a coherent paragraph.

**A.**This is now orthodoxy to which I subscribe - up to a point.**B.**It emerged from the mathematics of chance and statistics.**C.**Therefore the risk is measurable and manageable.**D.**The fundamental concept: Prices are not predictable, but the mathematical laws of chance can describe their fluctuations.**E.**This is how what business schools now call modern finance was born.

- EBDCA
- DCBEA
- ABDCE
- ADCBE

**Solution**

If you read the sentence, there are two possibilities for the ‘it’ in statement B. The ‘it’ is either ‘The fundamental concept’ in D (i.e. BD) or ‘modern finance’ in E (i.e. EB).

No other combination even as per the given options (CB and AB) would make sense if the ‘it’ is worked upon.

**The correct option is A.**