Question: Risk arbitrage is not really arbitrage because: A. The strategy is not designed to be market neutral B. Risk arbitrageurs do not attempt to build

"Risk arbitrage" is not really arbitrage because:

A. The strategy is not designed to be market neutral

B. Risk arbitrageurs do not attempt to build diversified portfolios

C. The hedging strategies employed do not cancel out all of the risks

D. Arbitrage is impossible once transaction costs are taken into account

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