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Limits to Arbitrage Examples We discussed three clear examples of real life arbitrage opportunities: (1) Twin shares, (2) Closed-end fund puzzle, and (3) Corporate spin-offs/carve-offs.

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Limits to Arbitrage Examples We discussed three clear examples of real life arbitrage opportunities: (1) Twin shares, (2) Closed-end fund puzzle, and (3) Corporate spin-offs/carve-offs. Please describe each example in detail and discuss why they are violations of market efficiency. What is the corporate spin-offs/carve-offs phenomenon? Why is it a violation of market efficiency

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