What is the main risk in merger arbitrage?
ACoupon is fixed
BDeal closes too early
CDeal may not go ahead
DIndex is too stable
Answer & Solution
Correct answer: C. Deal may not go ahead
The risk arises from the possibility that the merger or acquisition will not go ahead as planned.
Keep practising Portfolio Management
Browse all Portfolio Management questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What do venture capitalists usually obtain for taking high risk in early-stage firms?What is bridge financing in a startup?Which is a typical exit route for a venture capitalist?What is the first round of institutional venture capital to fund growth called?Venture capital is a form of which financing?What key benefit do Indian REITs give investors over direct property?In which year did India approve the creation of REITs?What tax benefit do most countries' laws give REITs?