- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 3. Derivative Benefits, Risks, and Issuer and Investor Uses
- Subject 1. Derivative Benefits and Risks
CFA Practice Question
Market completeness refers to the ability of an investor to ______.
B. achieve no desired payoffs
C. avoid transactions costs
A. achieve any desired payoff
B. achieve no desired payoffs
C. avoid transactions costs
Correct Answer: A
Selection A describes the situation of a market that is perfectly complete.
User Contributed Comments 2
| User | Comment |
|---|---|
| ankurwa10 | for the sake of these notes; market completeness --> investors get to make payoffs. |
| Kiniry | Lol at B |