Gromb, Denis (contributor); Vayanos, Dimitri (contributor) - 2001 - [Elektronische Ressource]
correspondence to Dimitri Vayanos, MIT Sloan School of
Management, 50 Memorial Drive E52-437, Cambridge MA 02142-1347, tel 617 … investors may vary), arbitrageurs
may choose not to invest up to the ¯nancial constraint. This is for risk management
reasons …. Although arbitrageurs engage in risk
management, they may exacerbate price volatility: when prices diverge, they may have to …