The principal focus of the LFE is the quantitative analysis of financial markets using mathematical, statistical, and computational models and methods. Research projects fall into five distinct subject areas:
Foundations of Financial Behavior and Adaptive Markets
The Adaptive Markets Hypothesis is an interdisciplinary approach to reconciling the Efficient Markets Hypothesis with human behavior.
Risk Management and Systemic Risk
Identifying methods for measuring and managing both systemic and standard types of risk in the financial system.
Exploring new business models and financial vehicles for raising and deploying funds to support biomedical research and drug development in a scalable and profitable manner.
Big Data and Financial Technology
Focusing on both positive and negative aspects of big data and financial technology in an attempt to identify and measure the magnitude of emerging problems as well as develop new technologies to address them.
Capital Markets and Asset-Market Dynamics
Dispelling the myths about hedge funds by developing more sophisticated risk analytics and conducting extensive empirical research to document risk/reward characteristics across time and over various market environments.