Which of the Following Is TRUE About the Implicit Assumption

Which of the following is TRUE about the implicit assumption of the DDM that "investors are rational"?

A) I is correct, II is incorrect.
B) I is incorrect, II is correct.
C) I and II are correct.
D) I and II are incorrect.
I.It assumes that at each period of time,investors react rationally and value the shares based on what they rationally expect to receive next year.
II.It rules out "speculative bubbles" or what is colloquially known as the "bigger fool theorem."