"Humans may be more sophisticated than animals, but we are nevertheless animals, subject to the same kind of forces that nature has built into all of creation," says MIT Sloan Prof. Andrew Lo of behavior affecting adaptive markets.

Investors should plan now for when and how financial decisions should be made if they become impaired, says investment strategist and professor Andrew Lo.

Barron's chatted with MIT Sloan Prof. Andrew Lo about his investment outlook, the hedge-fund-like vehicles that reflect his research into portfolio design, and the future of personal finance.

This story on a recent paper co-authored by MIT Sloan Prof. Andrew Lo describes his proposal for a five-tiered organization of uncertainty to more effectively understand and calculate risk in economic systems.

"What we thought was diversified became very highly correlated because of the global integration of the financial markets. Assets we thought were uncorrelated have moved together, so we have to be much more thoughtful about asset allocation," says MIT Sloan Prof. Andrew Lo.

"The traditional approach in stocks, bonds, and funds is no longer enough. To get by, you have to invest in currencies, commodities, real estate and private equity as well as in long and short strategies," says MIT Sloan Prof. Andrew Lo in this interview.

"Economics evolve, dictated by the behaviours of individuals, who learn from experience and positive feedback," explains MIT Sloan Prof. Andrew Lo in a story on the use of biological ecology principles in financial models.

MIT economist Andrew Lo, who beyond guest-blogging his favorite recent economics book here on Making Sense this week, appears on Friday’s NewsHour, discussing how human frailty and bad decision-making factored into the financial crisis.

"Maybe we should provide more government support for financial PhDs, as we already do for engineers, so the pay scales would seem less skewed and government service not look such a poor choice," says MIT Sloan Prof. Andrew Lo.

On March 22, 1992, USAir Flight 405 departed from LaGuardia Airport in icy conditions, and a few minutes later, stalled and crash-landed, killing 27 passengers. A year later, the National Transportation Safety Board (NTSB) completed its investigation and published Aircraft Accident Report AAR–93/02 in which it concluded that the crash was caused by a build-up of ice on the plane’s wings just after take-off. Despite the fact that de-icing fluid had been applied at the gate, a departure delay after the plane taxied onto the runway allowed ice to re-form on the wings, leading to the crash. Shortly after that report was published, airports around the world quickly modified their protocols, de-icing planes just prior to take-off rather than at the gate.

MIT Sloan Prof. Andrew Lo co-authored a report on an experiment to find out if humans are able to distinguish between real and randomly generated financial data.

In an analysis of various regulatory options for big banks in the U.S., Andrew Lo, director of MIT's Laboratory for Financial Engineering, is cited for his s

In this episode, Planet Money hosts take a closer look at proprietary trading, which is under attack by the latest proposal from the Obama administration. The new banking regulations proposed by the president call for a ban on commerical banks engaging in potentially risky trades with their own funds—or, in some cases, your own funds. Professor Andrew Lo helps shed some light on the murky world of 'prop trading.'

Hedge Fund Expert Andrew Lo on measuring compensation.