If the Probability of Occurrence of Event a Is Not

question 186

Multiple Choice

If the probability of occurrence of event A is not affected by the occurrence of event B,then A and B are said to be:

• A)mutually exclusive.
• B)statistically independent.
• C)collectively exhaustive.
• D)basic events.

Grasp the strategic rationale behind mergers and acquisitions including synergy, market expansion, and diversification.

Calculate the price per share in acquisition deals using financial information.

Recognize the implications of mergers and acquisitions on company structure (e.g., consolidation, becoming a subsidiary).

Understand the principles of friendly versus hostile takeovers.

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Definitions:

Arbitragers

Traders who buy and sell assets, such as stocks or commodities, in different markets or forms to profit from differing prices for the same asset.

Risk-Free Profits

Profits made from an investment that is considered to have no risk of financial loss.

Swap Market

The swap market is a financial market where parties exchange streams of cash flows or other financial instruments for a set period, often to manage risk or obtain better loan terms.

Fed Funds Rate

The rate at which banks and other financial institutions borrow and lend their Federal Reserve deposits to one another on an overnight basis.