Andrew Lo’s theory to beat a theory

Author of Adaptive Markets tells Risk.net what his ideas mean for investors and regulators

Andrew Lo
Andrew Lo: "We are in a situation now of greater fragility"

MIT finance professor Andrew Lo’s new book – Adaptive markets: financial evolution at the speed of thought – takes readers on an intellectual journey through subjects as varied as cognitive science, evolutionary biology and investment theory.

It’s a narrative where market blow-ups have similarities to extinction events, where investors are battling their inner ape, and where hedge funds are the super-predators of a financial Galapagos Islands. It’s a view of financial markets red in tooth and c

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