Answer: B event-driven strategy.

## Explanation Mergers and acquisitions (M&A) arbitrage is classified as an **event-driven strategy** because: - **Event-driven strategies** focus on corporate events such as mergers, acquisitions, bankruptcies, restructurings, or other significant corporate actions that create pricing inefficiencies - M&A arbitrage specifically targets the price discrepancies that occur during merger and acquisition announcements and processes - The strategy involves taking positions in companies involved in announced M&A deals to profit from the spread between the current market price and the deal price This differs from: - **Specialist strategies** typically refer to niche or specialized approaches in specific markets or instruments - **Equity-related strategies** are broader and include directional equity investments, not specifically tied to corporate events Therefore, the correct classification for a hedge fund strategy focused on mergers and acquisitions arbitrage is **event-driven strategy**.

Author: LeetQuiz Editorial Team