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Hedging against risk in a heterogeneous leveraged market

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Figure 1: The distribution of waiting times between defaults τwere obtained simulating the model for up to 10downright triangles, red upright crosses, magenta diamonds and cyan upright triangles,respectively) and (b)different initial conditions, with the ma
Figure 2: The aggregate distribution of waiting times between defaults (blue downrighttriangles) obtained on the basis of 2×102 simulations of the model with a signal precision βreceived by each HF randomly chosen according to a uniform distribution in [5,
Table 1: The mean amount of bank losses and interest payments per time-step. Evinde-tely, the interest rate charged to the HFs does not cover for the losses due to bankrupties.
Figure 4: The autocorrelation function of the binary representation of default eventsS(t)) (blue diagonal crosses)
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