Chartered Financial Analyst Level 1
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Which of the following statements regarding derivatives is most accurate?
Which of the following statements regarding derivatives is most accurate?
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A
Derivatives diminish the efficiency of price discovery for the underlying asset.
25.0%
B
The transaction costs associated with derivatives exceed those of the underlying asset.
25.0%
C
Excessive risk-taking and leverage in derivative markets can lead to market instability.
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