, observed risk-arbitrage spreads compensate arbitrageurs for liquidity risk and deal failure risk. We conclude that the risk in … risk-arbitrage has been systematically underestimated. Finally, we document an interaction between deal risk (a technical …

Arbitrage trading strategies are a class of trading strategies that involve buying and selling financial instruments to … take advantage of price discrepancies. The goal of arbitrage trading is to make a profit from the differences in prices … between securities or markets, without taking on significant directional risk. Arbitrage trading strategies typically rely on …

The practice of merger arbitrage is one of the more popular and profitable strategies employed by many hedge funds. At …. The risk to an individual risk arbitrage investment, then, comes from one specified source: the risk of deal completion … therefore very important to fully understand the nature and magnitude of the risks inherent in merger arbitrage. This paper …

carbon emissions and therefore produce more emissions than is socially desirable. However, according to a theory that is … theory, by maximizing the value of their entire portfolio (portfolio primacy) rather than the value of the individual company … offers the first systematic critique of this theory. First, it demonstrates that the composition of investment portfolios can …