A researcher has conducted an event study of all mergers that eventually fail. After the announcement date
Question:
A researcher has conducted an event study of all mergers that eventually fail. After the announcement date of the merger, the share price drops quite substantially over a period of several months until the merger eventually fails. Can investors take advantage of this finding to construct an arbitrage opportunity?
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This is not an arbitrage opportunity because it ...View the full answer
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Related Book For 
Behavioral Finance
ISBN: 9780190868741
1st Edition
Authors: H. Kent Baker, Greg Filbeck, John R. Nofsinger
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