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3min chapter
Liquidity Cascades
Flirting with Models
Indicators of a Growing Interest in the Options Market
Investors have significantly moved up the risk curve in pursuit of returns. Risk perception, and confidence in the fed's willingness to act as a lender of last resort is one reason why they are taking risks. The danger of increased risk adoption among investors is that it can lead to non linear response functions related to market volatility.
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