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 1Answer
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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