Finance Matters

Finance Matters

Finance Matters: The MIT Sloan Finance Group Blog

Finance Matters is the MIT Sloan Finance Group’s platform for sharing the latest on Finance faculty research, perspectives on financial industry news, MIT Sloan finance-related events, and will feature guest posts from our faculty, students, alumni, and affiliates.

How expensive is good financial advice?

Posted by Antoinette Schoar on June 6, 2013

The last two decades have seen a rise in the number of defined contribution plans such as 401(k) plans. As of 2011, Americans held $4.7 trillion in IRAs and defined contribution plans alone. These plans require ordinary citizens to make extremely complex investment decisions as they plan for retirement. For example, they must decide how much of their portfolios to put into stocks and how much to invest in bonds, the amount of risk to take, the right investment horizon,…
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Can Financial Engineering Cure Cancer?

Posted by Andrew Lo on May 2, 2013

There is growing consensus that the bench-to-bedside process of translating biomedical research into effective therapeutics is broken. In a paper published in the October 2012 issue of Nature Biotechnology, my coauthors, Jose-Maria Fernandez and Roger M. Stein, and I suggest that this is caused in large part by the trend of increasing risk and complexity in the biopharma industry. This trend implies that the traditional financing vehicles of private and public equity are becoming less effective for funding biopharma because…
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MIT Sloan, friends celebrate life of Nobel laureate Franco Modigliani

Posted by MIT Sloan Finance Group on April 27, 2013

  The late Franco Modigliani, who won the 1985 Nobel Memorial Prize in Economic Sciences, was celebrated April 9 for his many contributions to the field of economics and his lasting legacy at MIT, where he taught for more than four decades. Fellow economists, former students, Boston-area professionals, and family gathered at the MIT Faculty Club for the two-hour long “A Celebration in Honor of Franco Modigliani” to delve into the academic giant’s work in economics and finance and to…
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Opinions expressed in this blog are that of individuals and do not reflect the general opinion of Massachusetts Institute of Technology and MIT Sloan.