A professional who searches for mispriced securities in specific areas such as merger-target stocks, rather than one who seeks strict (risk-free) arbitrage opportunities is engaged in

A. pure arbitrage.
B. risk arbitrage.
C. option arbitrage.
D. equilibrium arbitrage.


B. risk arbitrage.

Risk arbitrage involves searching for mispricing based on speculative information that may or may not materialize.

Business

You might also like to view...

Experimental designs provide procedures for devising an experimental setting such that a change in an independent variable may be attributed solely to the change in the dependent variable while controlling for the effects of complex variables

Indicate whether the statement is true or false

Business

To rescind a contract, the parties must make restitution of the consideration they received under the contract

Indicate whether the statement is true or false

Business

An internal job structure based on ________ refers to the relative contribution of the skills, duties, and responsibilities of a job to the organization's goals.

A. compensable factors B. external market rates C. job content D. point methods E. job value

Business

Auditors should

A) provide positive as well as critical feedback to the project team. B) communicate any concerns about the project. C) not discuss the audit results with anyone other than the person who requested the audit. D) do all of the above.

Business