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Risk Arbitrage: A Tool for Generating Decent Returns on Cash
Raj: The average sell-to-buy ratio is 20 or somewhere in there. When you actually saw that ratio go below one and there was in aggregate more buying than selling, that's a very rare, extreme bullish signal. Raj: Risk arbitrage can generate anywhere from 10 to 15% returns. He says the tourist who enters this strategy often is attractive because it deals with the largest spreads.