Miscellaneous
Merger arbitrage
| Real return | Cash + 2% |
| Volatility | 6% |
| Correlation | 0.5 |
| Testfolio | ARBFX |
| Inflation | Nominal |
Going long stocks that are going to be acquired, and if it’s a stock deal, short the acquirer. The risk of the deal going through has to do with antitrust, national security and market conditions.