The Basle Concordat5 and the Basle Accord6 are probably the best known examples of the genre.
It is thus total risk, not neutral risk, that is arbitraged. 3  H. Markowitz,”Portfolio Selection,” Journal of Finance, vol. 7, no. 1 (1952), pp. 77-91. 4  See H.G. Grubel, “Internationally Diversified Portfolios,” American Economic Review, vol. 58 (1968), pp. 1299-314; or B.H. Solnik, “Why Not Diversify Internationally Rather than Domestically?” Financial Analyst Journal, vol. 30 (1974), pp. 91-135.