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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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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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® 2025 Level I Curriculum, Volume 3, Module 3.