Andrew W. Lo

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Andrew W. Lo

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Andrew W. Lo is the Charles E. and Susan T. Harris Professor, a Professor of Finance, and the Director of the Laboratory for Financial Engineering at the MIT Sloan School of Management.Lo's current research spans four areas: evolutionary models of investor behavior and adaptive markets, artificial intelligence and financial technology, healthcare finance, and impact investing. Recent projects include: an evolutionary explanation for bias and discrimination and how to reduce their effects; a new analytical framework for measuring the impact of impact investing; the potential for large language models to provide trustworthy financial advice to retail investors; new statistical tools for predicting clinical trial outcomes, incorporating patient preferences into the drug approval process; and accelerating innovation in deep tech via novel business, financing, and payment models.Lo has published extensively in academic journals (see http://alo.mit.edu) and his most recent book is The Adaptive Markets Hypothesis: An Evolutionary Approach to Understanding Financial System Dynamics.  His awards include Batterymarch, Guggenheim, and Sloan Fellowships; the Paul A. Samuelson Award; the Eugene Fama Prize; the IAFE-SunGard Financial Engineer of the Year; the Global Association of Risk Professionals Risk Manager of the Year; the Harry M. Markowitz Award; the Managed Futures Pinnacle Achievement Award; one of TIME’s “100 most influential people in the world”; and awards for teaching excellence from both Wharton and MIT. His book Adaptive Markets: Financial Evolution at the Speed of Thought has also received a number of awards. He is a Fellow of the American Finance Association, Academia Sinica, the American Academy of Arts and Sciences, the Econometric Society, and the Society of Financial Econometrics.Lo is also a principal investigator at the MIT Computer Science and Artificial Intelligence Laboratory, an external faculty member of the Santa Fe Institute, and a research associate of the National Bureau of Economic Research. He has co-founded several asset management and biotech companies, and sits on the boards of several for-profit and non-profit public and private healthcare organizations.Lo holds a BA in economics from Yale University and an AM and PhD in economics from Harvard University.

Honors

JOIM honors Kritzman and Lo

February 20, 2024

Pinnacle Achievement Award Given to Lo

Markowitz Award given to Lo

GARP honors Lo as Risk Manager of the Year

Lo wins Jamieson Prize

Lo’s book wins PROSE Award

Lo wins 2021 digital teaching award

Publications

"Financially Adaptive Clinical Trials via Option Pricing Analysis."

Chaudhuri, Shomesh E., and Andrew W. Lo. Journal of Econometrics. Forthcoming.

"Is It Real or Is It Randomized?: A Financial Turing Test."

Hasanhodzic, Jasmina, Andrew W. Lo, and Emanuele Viola. Journal of Portfolio Management. Forthcoming. SSRN Preprint.

The Adaptive Markets Hypothesis.

Lo, Andrew W., and Ruixun Zhang. Oxford, UK: Oxford University Press, Forthcoming.

"Use of Bayesian Decision Analysis to Maximize Value in Patient-Centered Randomized Clinical Trials in Parkinson’s Disease."

Chaudhuri, Shomesh E., Zied Ben Chaouch, Brett Hauber, Brennan Mange, Mo Zhou, Stephanie Christopher, Dawn Bardot, Margaret Sheehan, Anne Donnelly, Lauren McLaughlin, Brittany Caldwell, Heather L. Benz, Martin Ho, Anindita Saha, Katrina Gwinn, Murray Sheldon, and Andrew W. Lo. Journal of Biopharmaceutical Statistics. Forthcoming.

"Macro-Finance Models with Nonlinear Dynamics."

Dou, Winston, Xiang Fang, Andrew W. Lo, and Harald Uhlig. Annual Review of Financial Economics Vol. 15, (2023): 407-432. SSRN Preprint.

"Accelerating Vaccine Innovation for Emerging Infectious Diseases via Parallel Discovery."

Barberio, Joseph, Jacob Becraft, Zied Ben Chaouch, Dimitris Bertsimas, Tasuku Kitada, Michael Li, Andrew W. Lo, Kevin Shi, and Qingyang Xu. In Entrepreneurship and Innovation Policy and the Economy, edited by Benjamin Jones and Josh Lerner, Chicago, IL: University of Chicago Press, 2023.

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Recent Insights

Alumni

Can we save the bees?

Marta Ortega-Valle, SF ’08, is addressing one of the most pressing challenges faced by farmers: crop threats. She co-founded GreenLight Biosciences with fellow MIT alumni to help farmers create sustainable agricultural systems through the integration of science with technology.

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Ideas Made to Matter

Accelerated research about generative AI

Emerging insights suggest road maps, policy recommendations, and calls for action regarding generative artificial intelligence.

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Media Highlights

Press Source: Harvard Alumni Entrepreneurs

Deep tech: Money matters

In this podcast episode, professor Andrew W. Lo shared his journey from academia to entrepreneurship.

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Events

Executive Education

Executive Education Course

Artificial Intelligence

This online program from the MIT Sloan School of Management and the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL) challenges common misconceptions surrounding AI and will equip and encourage you to embrace AI as part of a transformative toolkit. With a focus on the organizational and managerial implications of these technologies, rather than on their technical aspects, you’ll leave this course armed with the knowledge and confidence you need to pioneer its successful integration in business.

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Machine Learning in Business

Machine learning, a branch of artificial intelligence, is the science of programming computers to improve their performance by learning from data. Dramatic progress has been made in the last decade, driving machine learning into the spotlight of conversations surrounding disruptive technology. This six-week online program from the MIT Sloan School of Management and the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL) aims to demystify machine learning for the business professional – offering you a firm, foundational understanding of the advantages, limitations, and scope of machine learning from a management perspective.

  • Oct 4-Nov 21, 2023
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