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Classifying Markets up to Isomorphism. (arXiv:1810.03546v1 [q-fin.MF])

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We define a notion of isomorphism for financial markets in both discrete and continuous time. We classify complete one-period markets. We define an invariant of continuous time complete markets which we call the absolute market price of risk. This invariant plays a role analogous to the curvature in Riemannian geometry. We classify markets when this invariant takes a simple form. We show that in general markets with non-trivial automorphism groups admit mutual fund theorems and prove a number of such theorems.


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