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Basic Question 1 of 13

Which statement is true?

I. Trading limitations contribute to market efficiency.
II. Arbitrage activities contribute to market efficiency.

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Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

Learning Outcome Statements

describe market efficiency and related concepts, including their importance to investment practitioners

contrast market value and intrinsic value

explain factors that affect a market's efficiency

CFA® 2024 Level I Curriculum, Volume 3, Module 3.