Total cash and marketable securities initial value.

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1. Explain why you would use the geometric mean instead of the arithmetic mean of the returns, since inquiring minds just want to know.

2. With a risk tolerance of 5% and a returns loss threshold of 5%, calculate, explain, and interpret the cash and marketable securities weights with a $100 million total cash and marketable securities initial value.

3. Briefly explain why the share-market impact of the announcement of an LBO might be so different to that of the other corporate restructuring transactions studied by Eckbo and Thorburn.

Reference no: EM132064006

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