Prof. Andrew W Lo

Charles E and Susan T Harris Professor of Finance
Director, Laboratory for Financial Engineering

Primary DLC

MIT Sloan School of Management

MIT Room: E62-618

Areas of Interest and Expertise

Applied Economics (Deflation, Economics, Economy -- Current Conditions, Inflation, Interest Rates, Macroeconomics)
Corporate Finance (Analysts’ Forecasts, Capital Budgeting, Entrepreneurial Finance, Finance, Financial Statement Analysis)
Asset Management and Pricing
Corporate Strategy and Policy (Risk Management)
Credit Cards
Econometrics
Economic Crisis
Education (Academic Research, Business Education, Distance Learning, Executive Education)
Financial Engineering (Financial Econometrics, Financial Information Technology)
Financial Markets
Financial Services
Hedge Funds
Mutual Funds
Patents
Information Technology (Artificial Intelligence, eBusiness, E-Commerce, Software Agents)
International Finance
Intertemporal Choice
Law (Bankruptcy, Intellectual Property, Intellectual Property Law)
Operations Research (Data Acquisition, Data Mining, Decision Making, Decision Support, Mathematical Programming)
Macroeconomics
Natural Language Processing\nHealthcare Finance
Optimal Control
Risk Management
Optimization
Security and Exchange Commission
Simulation
Statistics (Applied Mathematics, Applied Probability, Bayesian Networks, Bayesian Statistics, Sampling, Stochastic Modeling)
System Dynamics (Nonlinear Dynamics)
Technological Innovation (Angel Investing, Business Plans, Entrepreneurial Management, /Entrepreneurship/New Ventures, Patents, Start-Ups Venture Capital)
Economics, Finance & Accounting (EFA)
Big Data
Machine Learning

Recent Work

  • Video

    A Coronavirus Briefing with MIT

    March 16, 2020Conference Video Duration: 167:8

    A Coronavirus Briefing with MIT

    Andrew W. Lo - 2019 Life Science Conference

    December 10, 2019Conference Video Duration: 31:58

    Estimating and Predicting Clinical Trial Success Rates: A Data Science Approach

    All investors require some understanding of the potential risk and reward of a given venture before they’re willing to invest, and the less they know about it, the less capital will be available. This is especially true with biomedical assets in which the risks and rewards are equally outsized and hard to evaluate. Therefore, a prerequisite for addressing the so-called “Valley of Death” in early-stage biomedical R&D funding is better risk analytics. In this talk, Prof. Lo will describe his latest research on estimating historical probabilities of success for clinical trials and then applying machine-learning techniques to predict future success rates across a variety of drug/indication pairs. With more accurate assessments of these success probabilities, capital can be deployed more efficiently and at lower cost, thereby bringing greater amounts of capital into the biopharma industry at a time when capital is needed most.
     

    Andrew W. Lo - 2019 Citi-NY

    November 6, 2019Conference Video Duration: 38:51

    Gordon Gekko and the Cult and Culture of Finance

    Culture is a potent force in shaping individual and group behavior, yet it has received relatively little attention in the context of financial risk management and the recent financial crisis. In this talk, Professor Lo will present a brief overview of the role of culture and ethics according to psychologists, sociologists, and economists, and then propose a specific framework for analyzing culture in the context of financial practices and institutions in which three questions are addressed: (1) What is culture?; (2) Does it matter?; and (3) Can it be changed?

    2019 MIT Citi Conference in NYC