"The trader was in deep trouble. A millennial who had only recently been allowed to set foot on a Wall Street floor, he made bad bets, and in a panic to recoup his losses, he’d blown through risk limits, losing $4.9 million in a single afternoon.
"It wasn’t a career-ending day. The trader was taking part in a simulation run by Andrew Lo, an MIT finance professor. The goal: find out if top performers can be identified based on how they respond to market volatility..."
Healthcare Finance, a new course to be taught by Andrew W. Lo, the Charles E. and Susan T. Harris Professor, a Professor of Finance, and Director of the Laboratory for Financial Engineering at MIT Sloan, will cover the role of finance in the healthcare industry. It will emphasize the application of novel financing methods to facilitate drug discovery, clinical development, and greater patient access to transformative high-cost therapies.
"At the most rudimentary level, AI involves teaching machines to learn and to interact in order to undertake cognitive tasks that were usually performed by humans. The type of AI featured in sci-fi films in which machines possess a human-like intelligence, sometimes referred to as general artificial intelligence, remains a distant and elusive prospect. The most optimistic experts, such as Google’s director of engineering, Ray Kurzweil, predict that AI will be able to outsmart humans by 2029. Conservative predictions expect this to take at least 100 years, if at all..."
"Not that long ago, it looked like it was game over for the field of study that produced the mortgage backed security, the credit default swap and all manner of other exotic derivatives that exploded so spectacularly in the financial crisis of 2008.
"Now, financial engineering theory is being touted by several academics as the key to curing cancer faster, reducing the impact of climate change and imposing better risk discipline on the same banks that were once almost felled by the discipline’s creations..."
On this episode of the HBO documentary series, Andrew Lo discusses an idea he and colleagues developed with regard to the FDA approval process. They've developed a model that incorporates patient preferences into the design of clinical trials in order to set appropriate thresholds for FDA approval.
"Does evolutionary biology offer better insight into today’s markets than the immutable laws of physics? Andrew Lo, director of the Laboratory for Financial Engineering at the Massachusetts Institute of Technology, thinks so..."
"Hazte a un lado, Janet Yellen, la automatización del lugar de trabajo está a punto de volverse personal. Imagínese si en vez de confiar en la presidenta de la Reserva Federal (Fed) se usara una computadora para transformar montañas de datos económicos en bruto en proyecciones fidedignas de desempleo, inflación y producto interno bruto. ¿Cuál es el mejor nivel para la tasa de fondos federales? Presione..."
"Move over Janet Yellen, automation in the workplace is about to get personal.
"Instead of relying on the Federal Reserve chair, imagine using a computer to transform mountains of raw economic data into reliable predictions for unemployment, inflation and gross domestic product. What’s the best level for the federal funds rate? Press .
“'The capability is here,' says Andrew Lo, director of the Laboratory for Financial Engineering at the Massachusetts Institute of Technology, near Boston. 'The biggest hurdle is the cultural barrier. You’ve got a lot of central bankers who are not as open to technology.'"
"Uncertainty around how long it will take to find a cure for different forms of cancer is forcing investors to reconsider pumping hundreds of millions of dollars into pharmaceuticals.
"But offering long-term debt rather than venture capital can help draw them back, according to Andrew Lo, Professor of Finance at the MIT Sloan School of Management. He was speaking at the Financial Innovations in Healthcare conference, held at London Business School (LBS) and supported by the AQR Asset Management Institute."
"With the advent of social media, there has been an explosion of interest in how information shared online can be used to profit in the stock market.
"Twitter, the social media monster that allows users to share their thoughts on anything–as long as those thoughts are 140 characters or less–is emerging as a favorite dataset for financial researchers..."