Andrew W. Lo

An introductory finance textbook for the healthcare industry We are living in a golden age of biomedical innovation, yet entrepreneurs still struggle with the so-called Valley of Death when seeking funding for their biotech start-ups. In Healthcare Finance, Andrew Lo and Shomesh Chaudhuri show that there are better ways to finance breakthrough therapies, and they provide the essential financial tools...

How the greatest thinkers in finance changed the field and how their wisdom can help investors today. Is there an ideal portfolio of investment assets, one that perfectly balances risk and reward? In Pursuit of the Perfect Portfolio examines this question by profiling and interviewing ten of the most prominent figures in the finance world – Jack Bogle, Charley Ellis,...

For over half a century, financial experts have regarded the movements of markets as a random walk—unpredictable meanderings akin to a drunkard's unsteady gait—and this hypothesis has become a cornerstone of modern financial economics and many investment strategies. Here Andrew W. Lo and A. Craig MacKinlay put the Random Walk Hypothesis to the test. In this volume, which elegantly integrates...

The hedge fund industry has grown dramatically over the last two decades, with more than eight thousand funds now controlling close to two trillion dollars. Originally intended for the wealthy, these private investments have now attracted a much broader following that includes pension funds and retail investors. Because hedge funds are largely unregulated and shrouded in secrecy, they have developed...

A new, evolutionary explanation of markets and investor behaviour. Half of all Americans have money in the stock market, yet economists can't agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioural economists believe. The debate is one of the biggest in economics, and the value or futility of...