Arbitrageis the technique of investing in two assets (going long one and short the other) and assuming that the prices will converge over time. This is made possible as a result of market inefficiencies, although as technology advances more and more these inefficiencies are likely to be smaller and to be eliminated faster. Truearbitrageis meant to be risk free profit but in reality it very very rarely is. Due to the fact that any profit fromarbitrageis likely to be small, traders and investors will put in vast amounts of money to magnify returns. The most famous example ofarbitrageis that ofLong Term Capital Management, the quant-based hedge fund which started off selling new US government bonds and buying older ones, and taking the profits as the prices converged. Hedge funds which operate an event driven strategy will often work on the basis of mergerarbitrage, i.e. that the stock prices of companies will converge if they complete a merger deal.
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Module 1: Introduction
Module 2:LBOThe Big Picture
Module 3: Valuation and Transaction Assumptions
Module 4: Sources and Uses: The Theory
Module 5: Sources and Uses: Application to Nike Case
Module 6: P&L Projections &LBOAdjustments
Module 7:债务计划
Module 8: Balance Sheet and Adjustments
Module 9: Taxes
Module 10: Exit, Returns, &SensitivityAnalysis
Bonus Module A) Purchase Price Accounting
Bonus Module B) Dividend Recap
Bonus Module C) Add-on Acquisition Build
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