Merger Activity Is Likely to Heat Up When Interest Rates

question 42

True/False

Merger activity is likely to heat up when interest rates are high because target firms can expect to receive an especially high premium over the pre-announcement stock price.

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Definitions:

Margin of error

An expression of the amount of random sampling error in a survey's results.

Population variance

A measure of the dispersion of all data points within a population, squared from the mean of the population.

Confidence interval

A gamut of numbers, produced from sample statistics, believed to enfold the covert value of a population parameter.

Sample standard deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.