For, by experimenting with many different combinations of variables in the cross-section regressions, it will almost surely be possible to find some variables that are statistically significant. But in equity markets the applicability of the arbitrage principle is more limited: extra theoretical apparatus (e.g. Gucci Heritage Hobo Medium. Accompanying the price declines were widespread bank failures in the United States and the onset of the Great Depression, a slump that persisted throughout the 1930s in much of the developed world. Gucci Cheap Diaper Bags. However, much as in futures markets, mechanisms exist to minimize the risk of default. Gucci Heritage Hobo Medium. Similarly, the actions of pension funds (which, say, hold mainly long-term bonds) might impact upon bonds with thirteen to thirty years to maturity but not upon those with shorter maturities. Large Gucci Handbags Cheap. Most theories seek to explain the price difference, f(t, T) ' p(t), or its negative, the basis (sometimes expressed as a proportion of p(t)). Gucci Heritage Hobo Medium. In order to obtain definite predictions, it is necessary to embed the arbitrage principle in a framework that imposes additional conditions on the observable pattern of prices.