This paper tests the idea that financial intermediaries who act as arbitrageurs in the asset market help determine the equilibrium risk of financial assets. They do this by turning “alphas” into “betas”; assets with large abnormal returns attract more arbitrage and covary correspondingly...

We investigate financial experts' beliefs about climate risk pricing and analyze how those beliefs influence stock return expectations. In a comprehensive survey, we elicit experts' beliefs using both structured and open-ended questions. We establish that most experts share the view that climate...

We investigate financial experts' beliefs about climate risk pricing and analyze how those beliefs influence stock return expectations. In a comprehensive survey, we elicit experts' beliefs using both structured and open-ended questions. We establish that most experts share the view that climate...

We investigate financial experts’ beliefs about climate risk pricing and analyze how those beliefs influence stock return expectations. In a comprehensive survey, we elicit experts’ beliefs using both structured and open-ended questions. We establish that most experts share the view that...

Intro -- Acknowledgements -- 1 Performing Theory? -- 2 Transforming Finance -- 3 Theory and Practice -- 4 Tests, Anomalies, and Monsters -- 5 Pricing Options -- 6 Pits, Bodies, and Theorems -- 7 The Fall -- 8 Arbitrage -- 9 Models and Markets -- Appendix A An Example of Modigliani and Miller's...