CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Assume that before a merger the industry HHI is 2,200 and after the merger is becomes 2280. Will the merger evoke any antitrust concerns?
A. No because the increase in HHI is less than 100.
B. Yes because the industry is already highly concentrated.
C. Yes because the increase in HHI is more than 50 in a highly concentrated industry.
Explanation: In this case (a highly concentrated industry), an increase of over 50 in HHI will likely bring an antitrust challenge from the government.

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