author: raghurami reddy etukuru

Raghurami Reddy Etukuru. • statistical measures are backward-looking—they use analysis of historical data as a basis ... risk, as the historical data do not capture the potential for severe shocks. • similarly, the statistical measures will ...

... arbitrage strategy. Consider the merger announcement that company ABC will merge with company XYZ in a one-for-one stock swap. Afterthe announcement, company ABC's stock price is $10, and company XYZ's stock price is $8. The merger ...