Hedge Funds May Invest or Engage in

question 45

Multiple Choice

Hedge funds may invest or engage in

• A) distressed firms.
• B) convertible bonds.
• C) currency speculation.
• D) merger arbitrage.
• E) All of the options are correct.

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Definitions:

Target's Stock

Refers to the equity securities of a company that is the object of a merger or acquisition interest.

Risk Adjusted

Adjusting returns or valuations to take into account the level of risk involved, ensuring that comparisons account for different risk levels.

Consolidation

The process of combining multiple entities, assets, or financial statements into a single entity or financial statement.

Acquisition

The process of purchasing another company to gain control, typically through a buyout or merger.