Watch the video “The Winner’s Curse” (Links to an external site.), research additional materials e.g. Wikipedia or Investopedia, and answer the following questions.
- What is the winner’s curse? How does it apply in the context of mergers and acquisition? (5 points)
- What factors contribute to the winner’s curse? (5 points)
- How does a firm reduce the risk of the winner’s curse when using the merger and acquisition strategy? (5 points)
Please use question answer format, not an essay. Every answer is 250 maximum