State for each of the following statements whether it is true or false:

I) Credit Default Swap(CDS) have unlimited loss risk for the seller.

II) Banks can diversify their credit risk by selling Credit Default Swap(CDS) contracts that have non-client firms as reference entities.

III ) In the absence of arbitrage opportunities, the return on a bond portfolio that is completely protected by Credit Default Swap (CDS) contracts should be approximately zero.