21-115 the Argument That Mergers Are Valuable Because They Create

question 139

Multiple Choice

21-115 The argument that mergers are valuable because they create revenue synergies is based on

• A)the opportunity to expand into less than fully competitive markets.
• B)the diversification affects of combining dissimilar asset and liability portfolios.
• C)realizable economies of scope.
• D)the enhancement of revenues by acquiring a bank in a growing market.
• E)Answers A,B,and D only.

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Definitions:

T Critical Value

The value from the t-distribution that is associated with a specified level of significance for a two-tailed test.

Confidence Levels

Confidence levels are the degree of certainty or probability—expressed as a percentage—that a confidence interval contains the true parameter value.

Alternative Hypothesis

The hypothesis in a statistical test that proposes a specific difference or effect, in contrast to the null hypothesis which suggests no effect.

Rejection Region

The range of values in hypothesis testing that if the test statistic falls within, leads to the rejection of the null hypothesis.