Lies My Finance Professor Told Me: New Perspectives and Guidance for the Future, Part 1

Tuesday, May 6, 2014 - 1:00pm to 2:15pm
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Modern finance theory has enjoyed many successes over the past half century, but the recent financial crisis has thrown its most basic tenets into disarray. Concepts like diversification, long-only investing, strategic asset allocation, and the risk/reward trade-off have all been challenged by the market gyrations of the last five years, yet portfolio managers and consultants are hard-pressed to explain why to their frustrated clients. In this talk, Professor Lo will review the origins of the standard financial paradigm and offer a new perspective that can explain the past and provide some guidance for what to expect in the future.