against price volatility can generate price volatility in equilibrium, even absent fundamental risk. Fearing that asset prices …

financial market that features volatility uncertainty. To have a mathematical consistent framework we use the notion of G … this more complex situation and consider stock price dynamics which exclude arbitrage opportunities. Due to volatility … claims and deduce explicit results in a Markovian setting. -- Pricing of contingent claims ; incomplete markets ; volatility …

speculate, we show that speculation increases volatility of asset returns and investment growth, increases the equity risk …

capital markets, which are considered as efficient and perfect in theory, are volatile and imperfect in reality. The paper …