This paper examines the annual risks and returns of three disparate, hypothetical merger arbitrage portfolio strategies … December 2016 time period. Previously written and undoubtedly the most prominent literature into M&A and merger arbitrage … [Schleifer & Vishny ‘97], [Mitchell & Pulvino ‘01] and [Baker & Savasoglu ‘02] focus on the limits of pure arbitrage the creation …

trade-time volatilities. We jointly develop theoretical foundations of "no speculative arbitrage'' whose implications … month windows. We find strong support for no speculative arbitrage at a moment in time, but not across time …

We provide a comprehensive empirical analysis on the implication of CDS-Bond basis arbitrage for the pricing of …

We examine how institutional ownership structure gives rise to limits to arbitrage through its impact on short … costs of shorting, and higher arbitrage risk. These constraints limit the ability of arbitrageurs to take short positions …

actually the cost. This confusion has to dissipate with arbitrage at the market where the short selling is institutionalized or … arbitrage, which recurs to dissipate all the differences; i.e. the expected returns must be converged to the single rate and we … can ignore the beta as a component of the equity cost. The arbitrage results in valuation differences in the end, such as …

less investor attention and that are costlier to arbitrage …

the costs of running such structure. Finally, an application to financial arbitrage processes is fully developed within a … transactional algebra, setting up arbitrage returns net of transaction costs, establishing boundary conditions for an arbitrage to … take place, and finally allowing for a definition of what should be meant by financial arbitrage within a transactional …