18. a. Briefly describe what an equity carveout is, and what is the typical stock price reaction for 'parent' firms announcing a carveout (positive, negative, or neutral), according to the empirical finance literature. (30 marks) b. Two potential explanations for the observed stock price reaction around equity carveout announcements are the "Efficiency", and the "Information" explanation. Describe these two explanations, and mention how empirical researchers have tried to distinguish between them. (70 marks)