arbitrage opportunities that emerge endogenously in reaction to the portfolio imbalance generated by constrained agents. The … agents, arbitrage activity has an impact on the price level and generates both excess volatility and the leverage effect. We …

is an arbitrage cap on its premium resulting from new issues. This censors the distribution of the premium and causes its …

The CAPM is commonly used for an introduction of the equity cost in practice to calculate the corporate value, which is … actually the cost. This confusion has to dissipate with arbitrage at the market where the short selling is institutionalized or … arbitrage, which recurs to dissipate all the differences; i.e. the expected returns must be converged to the single rate and we …