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  • Robert C. Merton  

    Robert C. Merton

    School of Management Distinguished Professor of Finance, MIT Sloan School of Management

     

    Robert C. Merton is the School of Management Distinguished Professor of Finance at the MIT Sloan School of Management. He is a University Professor Emeritus at Harvard University. Merton received the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for a new method to determine the value of derivatives. Merton’s research focuses on finance theory including lifecycle finance, optimal intertemporal portfolio selection, capital asset pricing, pricing of options, risk corporate debt, loan guarantees, and other complex derivatives securities. He has also written on the operation and regulation of financial institutions. Merton’s current academic interests include financial innovation and dynamics on institutional change, controlling the propagation of macro financial risk, and improving methods of measuring and managing sovereign risk. He is the author of Continuous-Time Finance and a co-author of Cases in Financial Engineering: Applied Studies of Financial Innovation; The Global Financial System: A Functional Perspective; Finance; and Financial Economics. Merton has also been recognized for translating finance science into practice. He received the inaugural Financial Engineer of the Year Award from the International Association of Financial Engineers in 1993, which also elected him a Senior Fellow. Derivatives Strategy magazine named him to its Derivatives Hall of Fame as did Risk magazine to its Risk Hall of Fame. He also received Risk’s Lifetime Achievement Award for contributions to the field of risk management. A Distinguished Fellow of the Institute for Quantitative Research in Finance (‘Q Group’) and a Fellow of the Financial Management Association, Merton received the Nicholas Molodovsky Award from the CFA Institute. He co-founded Long-Term Capital Management. Merton is currently Resident Scientist at Dimensional Fund Advisors, where he is developing a next-generation integrated pension-management solution system that addresses deficiencies associated with traditional defined-benefit and defined-contribution plans. He is also a past President of the American Finance Association, a member of the National Academy of Sciences, and a fellow of the National Academy of Arts and Sciences. Merton received a B.S. in Engineering Mathematics from Columbia University, a M.S. in Applied Mathematics from California Institute of Technology and a Ph.D. in Economics from Massachusetts Institute of Technology.