A combination of differential borrowing costs across markets and different preferences among the relevant parties provides a justification for at least some sorts of swap (in particular, interest rate swaps and foreign exchange swaps). To the left of Z, along r0Z, efficient portfolios contain a non-negative proportion of the risk-free asset. Gucci Full Moon Sale. A third company (or sovereign state), C, has issued a debt instrument, C-bonds, which are risky in the sense that C might renege on some aspect of the bond contract (e.g. fail to make coupon payments, or to repay the principal). Gucci Wristlet Guccissima. Indeed, the practice of creating stripped bonds effectively creates ZC bonds artificially from coupon-paying bonds (see above, page 285). Gucci Full Moon Sale. Sometimes noise traders are assumed to include investors who trade for liquidity purposes (for instance, when assets are sold to provide cash for consumption or when assets are purchased as a consequence of income in excess of consumption). Wholesale Gucci Replica Purses. When the time arrived for an obligation on the bond to be met (e.g. repayment), the issuer could confirm the legitimacy of the claim by matching the indents on the two halves of the document. Gucci Full Moon Sale. To the extent that the CAPM is acceptable, 'risk' should be measured by each asset's beta-coefficient, not its standard deviation of return.