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Suppose the payoff from a merger arbitrage operation is 5

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Suppose the payoff from a merger arbitrage operation is $5 million if successful, -$20 million if not. The probability of success is 83%. The expected payoff on the operation is

A. $5 million

B. $0.75 million

C. $0 since markets are efficient

D. Symmetrically distributed

Reference no: EM13568230

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