Among the important characteristics of market efficiency is (are) that:
I. There are no arbitrage opportunities.
II. Security prices react quickly to new information.
III. Active trading strategies will not consistently outperform passive strategies.

A) I only
B) II only
C) I and III only
D) I, II, and III

Market Efficiency

A concept stating that all available information is already reflected in asset prices, making it impossible to consistently achieve higher returns without assuming additional risk.

Arbitrage Opportunities

Situations where a trader can profit from price differences of the same or similar financial instruments on different markets or in different forms.

Active Trading Strategies

Investment strategies involving frequent buying and selling of securities to exploit short-term price movements.