11 Abnormal returns refer to gains beyond what the market would normally provide after adjustment for
risk
True False
12. The stock of acquiring companies often increase by 60 percent or more as a result of a merger.
True False
13. There is a good opportunity to achieve abnormal gains by investing in either the acquiring company's or
acquired company's stock.
True False
14. In a leveraged buyout, the company's balance sheet serves as a collateral base to make the borrowing
possible.
True False
15. Results of research studies make it easy to identify characteristics of potential acquisition candidates.
True False
USA 
India