Question: Which statement is correct regarding the equity hedge strategies? Question 1 Answer a . Merger arbitrage strategies involve going short the stock of the company
Which statement is correct regarding the equity hedge strategies?
Question Answer
a
Merger arbitrage strategies involve going short the stock of the company being acquired at a discount to its announced takeover price and going long the stock of the acquiring company when the merger or acquisition is announced
b
Fundamental value strategy uses fundamental analysis to identify undervalued companies
c
Market neutral strategy uses fundamental analysis to forecast future security prices
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