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A Professional Who Searches for Mispriced Securities in Specific Areas

Question 71

Multiple Choice

A professional who searches for mispriced securities in specific areas such as merger-target stocks,rather than one who seeks strict (risk-free) arbitrage opportunities is engaged in


A) pure arbitrage.
B) risk arbitrage.
C) option arbitrage.
D) equilibrium arbitrage.
E) none of the above.

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