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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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Edward Liu

Edward Liu

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.