What is your estimate of the true probability

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The following questions are based on the case " Merger Arbitrage at Tannenberg Capital" included in the Harvard coursepack. All questions must be answered based on the information provided in the case.

Question 1: What is your estimate of the true probability of deal failure? Using your estimate of the true probability of failure, what is your estimate of the annualized expected return on your trade? (If the deal succeeds, assume that it will close on June 30, 2016.)

Question 2: What are the risks of this trade? How should Kohl and Jensen size this trade within Tannenberg's portfolio?

Reference no: EM133491831

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