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Consider a financial market where many people invest by buying shares of mutual funds or hedge funds run by professional managers. In which situation do

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Consider a financial market where many people invest by buying shares of mutual funds or hedge funds run by professional managers. In which situation do you think that limits to arbitrage caused by performance-based arbitrage will be more problematic: (1) when the average fund manager has been in the business for a long time and has a long track record, or (2) when the average fund manager is new and has little track record

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