CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Assume that before a merger the industry HHI is 400 and after the merger is becomes 700. Will the merger bring any possible antitrust challenges?
A. Yes because the increase in HHI is more than 100.
B. Yes because the increase in HHI is more than 50.
C. No because the industry is not concentrated before and after the merger.
Explanation: The industry is considered competitive and an antitrust challenge is unlikely.

User Contributed Comments 1

User Comment
darbyland HHI < 1000 - competitive and no challenge regardless of the increments in HHI
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