, Columnist
Andrew Lo on an Incomplete Hypothesis
A popular theory about markets isn't wrong, just incomplete.
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This week on our Masters in Business radio podcast, we sit down with Andrew Lo, professor at Massachusetts Institute of Technology's Sloan School of Management, where he is director of the Laboratory for Financial Engineering. Lo is the author of numerous books, including the recently published "Adaptive Markets: Financial Evolution at the Speed of Thought."
Among other topics discussed was the efficient-markets hypothesis. Lo said the theory isn't really wrong; it's just incomplete. The information reflected in stock prices, he said, provides only a partial picture of what is driving markets.