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Derivative markets make stock and bond markets less efficient. True False

Derivative markets make stock and bond markets less efficient.

True

False

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Answer #1

Answer:

The given statement is true.

Derivative market make stock and bond markets less efficient by its special features and benefits.

Generally or traditionally stock and bonds are played critical role in long positions but after the birth of derivatives position. Is irrelevant and term is also irrelevent only the relevant concept is efficient and effective market.

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