Can Financial Engineering Cure Cancer? | Andrew Lo | TEDxCambridge

We are making breakthroughs almost weekly in our understanding of cancer and other deadly diseases, both in how to treat and - in some cases - how to cure them. So why is funding for early stage biomedical research and development declining just when we need it most? One answer is that the financial risk of drug development has increased, and investors don’t like risk. What if we could reduce the risk and increase the reward through financial engineering? By applying tools like portfolio theory, securitization, and derivative securities to construct “megafunds” that invest in many biomedical projects, we can tap into the power of global financial markets to raise billions of dollars. If structured properly, investors can earn attractive returns with tolerable levels of risk, and many more patients can get the drugs they desperately need. Finance doesn’t have to be a zero-sum game; we can do well by doing good if we have sufficient scale.
Andrew W. Lo is the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management, the director of MIT’s Laboratory for Financial Engineering, a principal investigator at MIT’s Computer Science and Artificial Intelligence Lab, and an affiliated faculty member of the MIT Department of Electrical Engineering and Computer Science.
Andrew is the author of five books and over 100 research articles. His early work showed that stock market prices do not follow random walks, as many economic theories imply, but contain predictable components that can be identified and exploited to manage risk and improved expected returns. Since then, his research has spanned many other areas, including: the econometrics of hedge funds; mathematical and statistical models of systemic risk in the financial system; evolutionary models of human behavior; and, most recently, applying financial engineering to fund biomedical innovation more efficiently.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx

[@dilendraratnayake8689]

I recently started studying Financial Engineering and this video truly helps me understand what I can do for the world and my potential in learning this subject.

[@omautle]

I'm an Engineer and this guy is the reason I'm currently doing my CFA. His MIT Sloan OCW lectures have really been helpful. A grate man indeed.

[@MrJohndoe845]

yes a grate man indeed

[@dirmanbw336]

Same here. How is your CFA exam?

[@NervousValuable]

So greatful for this grate man

[@gregorybattis9588]

EXACTLY THE SAME HERE. I got into finance because of his MIT videos and then his books, now I am studying for my CFA.

[@ColocasiaCorm]

I also express my gratetude

[@mohammedhossain2202]

I want to attend MIT Sloan just to take your course. Much respect

[@pkskyw]

same here bro, he's a hero

[@leoshapiro3536]

Same here

[@MrChdion]

You can actually go edx education platform and follow one of his course: The Science and Business of Biotechnology

[@lakersloverus]

Andy Lo truly one of the best and brightest minds!

[@ramdeuter1046]

How does this video still have a relatively small amount of views? Hands down one of the most insightful I have ever watched

[@Karan40a]

Professor Andrew is one of my favorite finance professor. He gave very thought provoking idea. I hope some portfolio managers will think about it.

[@mustaphan9121]

Hi my friend , where can I find professor andrew classes plz

[@ep3345]

Excellent! I'm so impressed. Having being in the asset management industry for more than 10 years, I could never made a linkage between the finance to the moral practice in real life. Shame on me. Transforming speech. Thank you. I would like to take your class in the near future.

[@billxing7]

This is an amazing idea. I think that when most people say that America has a "mature" financial market, it also deters its innovations. Finance has unlimited power, and it is not a evil if we could use it in a responsible way. When more people get involved into the financial market with showing their real risk preference, the money will be used in a more effective way.

[@nutmeglee]

So sorry for your losses, but grateful for your important work. Thank you.

[@chrisbishop732]

Fabulous presentation...the world needs the solutions to disease that this bold financing approach could help bring to reality!

[@thelaw557]

Why isn't this video more popular?

[@jamesuwellok9007]

I sincerely appreciate you Dr osaye, and you do have my full trust,you should be heard around the world , and you have a way of speach that entices me,thank you so much for curing my type two cancer I had thought would never end.

[@__fibo__]

Amazing... simply amazing!

[@jamesgenesisajoji8764]

Thank you Dr osaye for being responsible for the cure of my cancer,I highly recommend you to each and every other person here,thank you Dr....

[@basiruabubakar3389]

Thank you so much Dr osaye for your ultimate help and understanding in curing my cancer Now I know that anything is curable..

[@jawlung2306]

You did a lot for me Dr osaye by curing my cancer , definitely it was nearly the end and third time I have been using different medicine,I thought to try for the last time of his herb's and after two weeks of using these herb's It came out negative ..

[@edliu6290]

Wonderful and creative ideas, Andrew.

[@ColocasiaCorm]

Thank you, Andrew.

[@user-py6zb3xj9u]

What a way to start the talk..Wow!

[@zyrjon1]

Let's do it now!

[@user-tm8wy1hx7n]

Most of the time the solution is not that direct.I was moved by this idea when I watched his MIT class video.Andrew lo is really a great person.I wish to meet him soon.

[@likithcr8492]

have you met him

[@deforestgumption9505]

I am a financial engineer, all I can say is that sitting in front the computer 24/7 creates cancer

[@TheCheukhin]

the most important thing is that the successful rate% is unknown and it is hard to be predicted. In 2008, the successful rate% was 2%. Probably, the successful rate% drops to 0.1% now.

[@2894031]

Wow so powerful 👍

[@yangli4360]

amazing！！

[@JK-sy4ym]

he is best.

[@azizalwatban8666]

Wow really great talk, I wonder why this video has few views.

[@RedWinePlease]

Great idea. Devil in the details. Who decides and how to decide which company(s) to fund and which not to fund? Which cancer(s)? One cancer or many types of cancers? Focus on one cancer and many possible solutions increase the probability of success. Focus on many types reduces the probability of success for each. Or, only fund possible solutions that might work on many types of cancers. These questions carry their own level of risk. I would be willing to risk some money on it.

[@chineduikechukwu5008]

Hey Dr Oiwoh thank you for keeping me pointed in a direction of continued health, your skill and understanding professionalism is appreciated…

[@ehsanaagha]

I wish to see that project in reallity

[@muhammadaminu7733]

Thank you so much Dr Osaye,for your full dedication to your work,and the knowledge you compose, I am very happy and proud that I’m cured of cancer ,after a long time of suffering,thanks dr you did good.

[@sakhoajakaffa1067]

This is definitely the best TED Talk I have ever watched

[@alfaqeehm7063]

I just want to say a very big thank you to Dr Obaz on KZbin, for saving my sister from cancer that almost took her life, God bless you sir🥂💕🥰🔝

[@yonovordue1295]

Living with cancer is something I never prayed for, and I was a victim of it, until I came across Dr Obaz on KZbin channel, now it turned in testimony...

[@musandagiahmed7848]

Your undying generosity and passion towards making the world a better place and free from disease is overwhelming,I admire you Dr oiwoh on KZbin channel and I hope your great cause of making the world a better place and free from disease is accomplished…

[@polo32892]

I attended MIT; people like Bill Gates and Warren Buffett should watch this.

[@antonhamza7833]

I'm so glad to Dr omoh , I most really appreciate you for your work. From curing Me for Cancer.. 🙏

[@ibrahimabdullahi1369]

Dr Obaz on KZbin gave me hope and I had a great believe on his herbs, and it ended in testimonies, I’m free from Cancer, God bless you Doc❤…

[@akadireemmanuel4092]

From the city of Texas, I bring much appreciation for Dr Obaz on KZbin, I'm now free from Cancer..

[@karimbasem1234]

Assume we have 30 Billion USD...hahahaha :D

[@rukayyatajudeen1843]

Dr Oiwoh on youtube channel,thank you so much for your kind and thoughtful concern in regard to my health and providing me with excellent medical and physical care. I am most grateful for your kindness doc…

[@verginiaokonkwo3453]

Dr Oiwoh on KZbin channel is the best! He takes time to listen. He has been there for me when either my husband or I need him. Fantastic doctor!..

[@odumsolomon8867]

Your healing herbs have touched my soul Dr osaye,and I'll never know how to repay your kindness,I'm so greatful I patiently waited for your medication for it has cured my virus completely©®™

[@chukwuemekaezeh6657]

Thank you Dr Omoh on KZbin for your kind jesture towards my ailment called Cancer your medication really make me great, keep saving Lives Dc.

[@omobolanleoladosu4308]

Dr Mados natural knowledge is something else, I am glad I met him at the time I needed his help most..

[@rutholuchi6755]

I tested positive for cancer 2 years ago, also lost a relationship due to it, but all gratitude to Dr Obaz on KZbin for restoring my health, am perfectly ok now🌹🌹••

[@anjalobaliri324]

Thank you DR. OGOH for being the reason I am Smiling Again, you took my pain away and made me happy: I still can’t believe I am cured completely. Keep up the good work doctor. 💛

[@ekinneebenezer8699]

Thanks for all you do dr oiwoh on KZbin you have a good heart keep on the good deed towards getting people cured may God always blsss you.🙏🙏..

[@japhetjohn8192]

I am so blessed Dr osaye,I have great confidence in you and your abilities, I'm truly grateful for the fact that I no longer have to panic over "cancer" again, you're amazing doctor osaye®

[@abubakarmusaadam5263]

Dr Oiwoh is a great doctor! He’s very understanding and listens to your concerns. He takes time with the patient to help them with their health issues! I highly recommend him to anyone looking for a specialist….

[@ganamaismail7140]

I can't possibly thank you enough Doctor osaye for the excellent remedies you produced to your patients,as a unique gift of love©©

[@ibrahimyakubu8333]

Great medication , wonderful and warm experience from start to finish. I Appreciate Dr Oiwoh on KZbin channel for taking time to go over my illness clearly and my health problems . Was referred over by my general doctor and can see why. He’s Highly recommended..

[@umaryunusa5959]

Humbly appreciate your kind gesture Dr Omoruyi,you have always able to help with any health issues,we all knows that cancer is a dangerous diseases, the world thought has no cure but I’m happy to say today that I’ve been cured and I’m glad to have you as my doctor💗❤️💟@@@

[@zainabakinola1999]

Thank you so much Dr osaye for all your hard work and support in helping get rid of my cancer virus,Your humility, kindness, and strength are greatly appreciated around the world

[@bamecynthia9897]

Your genuine contribution toward healing the sick shows you have a good heart and we are greatful for all you do dr gboya on KZbin ❤️..'.

[@Joseph870619]

I wanna be "loadish"

[@mahadi5807]

Accolades to my doctor (dr gboya) I have so much respect for how much positivity you put out while curing my cancer ☺️☺️..

[@christyphilip4442]

I’m so glad Dr oiwoh I met on KZbin channel I really appreciate you and your work for curing me from cancer thanks 😊..

[@usmanabdullahiwurno3303]

Dr gboya have done a wonderful thin in my life and am great full I am tested negative all thanks to him ..😊

[@ibrahimabubakar5938]

My pain and sorrow is gone and gone for good. Dr Ogoh is not just an Herbal doctor but like a Father to me and my savior. Thanks for caring my Cancer disease with your root and herbs 🙏

[@zulaimuhammad427]

DR Oiwoh on KZbin channel is very professional. Takes time to explain things, resolve health issues. HIGHLY Grateful for his experience & wide range of knowledge….

[@princeamaechi4211]

Thank you Dr edos for the great miracle you did for helping me cure my Cancer I really appreciate...

[@aweolayinkaolayinka1388]

So much respect for how much positivity you put in getting people cured. I envy your good work dr gboya on KZbin keep it up 👏👍..

[@omobolanleoladosu4308]

My appreciation and gratefulness to Dr Mados on KZbin for giving me another reason to live..

[@uwemobotcomfort6443]

May peace be upon your household our own Dr osaye,as you have naturally brought healing to diveous and deadly sicknesses and diseases around us,by introducing your herbal medications across the world, you'll be forever remembered by so many, thank you so much©®™

[@clementbitrus]

Being soo happy with your herbal medications Doctor osaye and how authentic they are,I'm so impressed for your strength and efforts you put in to curey cancer©®™

[@seidumuhammed9430]

By the grace of God and the help of dr gboya am hsv cured I was tested negative today may God continue to bless you sir........

[@auwalusuleiman8028]

Giving thanks to Dr Mados is something I will always take personal because he brought me back to my full health..

[@auwalusuleiman8028]

Dr Mados is my saviour I thought all hope was lost until i was recommended to him here on KZbin. I recommend him also..

[@hawauopeyemi7479]

I always prayed for a day like this when I will be able to get rid of my cancer all thanks to dr Gboya on KZbin for making that happen 😊........

[@isahyahayayusuf1072]

I'm so happy for Dr osaye, his herbal medication are so authentic and work's perfectly just according to how he said it would,may your great personality reign,and your soul be blessed just as you spread healing across the world.

[@mubaraklurwanu7254]

You're the reason we celebrate Dr osaye,we your esteemed customers have been very grateful since we used your herbal medication's, and I have been extremely happy since I got cured of HSV, Thank you so much Doctor for your working perfection®©™

[@ukenajacob8703]

I suffered from cancer for 15 years until I came across dr gboya he is a genius in what he doese may God continue to bless him 🙏.......

[@sarahlois3237]

Dr Gboya is such an amazing doctor his genue passion in getting people cured shows that he is a God sent keep up the good work doc....

[@ahmedalqarout5865]

I cannot believe the comments section. This professor is manipulative. His premise is based on statistical assumptions that can way too easily be wrong. First, What if more than three drugs worked? This means the profits will be well over 2/3 the original amount. Who is paying that profit? The actual patients and the public! The more profit financiers make, the higher the cost incurred by people! Money in this way is a zero sum game. Second, using touching stories in such way is really low class mate! Again, his whole premise is fictional and also overlooks the fact that investors want shorter term commitments and you can make more money that way. The opportunity cost might be too high. Cannot believe this is actually for real!!! A public choice will always be cheaper and reasonable. Allowing finance grip to extend to such critical matters will mean that people will have to pay such high amount for patents cost not the actual medicine or the research!

[@shucklesors]

actually, the largest statistical assumption he made (by very far, and if you knew anything at all about finance, this should literally be the ONLY thing you have a serious concern with) is that those 150 projects are uncorrelated. but i doubt you know what youre talking about yourself, so yea...

[@likithcr8492]

gaining life is better than money how do you consider it has a zero sum game could you please explain.

[@2894031]

Well you obviously completely missed the point

[@marystephen1413]

Accolades to my doc. @drgboya I have so much respect for how much positivity he put in helping me get rid of my cancer 🙏🙏.........

[@blessingamos7711]

I am glad I came across @drgboya KZbin channel I have learned allot from him he is such a genius in getting people cured..........

[@chineduikechukwu5008]

Hey Dr Oiwoh thank you for keeping me pointed in a direction of continued health, your skill and understanding professionalism is appreciated…

[@musandagiahmed7848]

Your undying generosity and passion towards making the world a better place and free from disease is overwhelming,I admire you Dr oiwoh on KZbin channel and I hope your great cause of making the world a better place and free from disease is accomplished…

[@rukayyatajudeen1843]

Dr Oiwoh on youtube channel,thank you so much for your kind and thoughtful concern in regard to my health and providing me with excellent medical and physical care. I am most grateful for your kindness doc…

[@verginiaokonkwo3453]

Dr Oiwoh on KZbin channel is the best! He takes time to listen. He has been there for me when either my husband or I need him. Fantastic doctor!..

[@alfaqeehm7063]

I just want to say a very big thank you to Dr Obaz on KZbin, for saving my sister from cancer that almost took her life, God bless you sir🥂💕🥰🔝

[@abubakarmusaadam5263]

Dr Oiwoh is a great doctor! He’s very understanding and listens to your concerns. He takes time with the patient to help them with their health issues! I highly recommend him to anyone looking for a specialist….

[@anjalobaliri324]

Thank you DR. OGOH for being the reason I am Smiling Again, you took my pain away and made me happy: I still can’t believe I am cured completely. Keep up the good work doctor. 💛

[@ibrahimyakubu8333]

Great medication , wonderful and warm experience from start to finish. I Appreciate Dr Oiwoh on KZbin channel for taking time to go over my illness clearly and my health problems . Was referred over by my general doctor and can see why. He’s Highly recommended..

[@bamecynthia9897]

Your genuine contribution toward healing the sick shows you have a good heart and we are greatful for all you do dr gboya on KZbin ❤️..'.

[@christyphilip4442]

I’m so glad Dr oiwoh I met on KZbin channel I really appreciate you and your work for curing me from cancer thanks 😊..

[@ekinneebenezer8699]

Thanks for all you do dr oiwoh on KZbin you have a good heart keep on the good deed towards getting people cured may God always blsss you.🙏🙏..

[@usmanabdullahiwurno3303]

Dr gboya have done a wonderful thin in my life and am great full I am tested negative all thanks to him ..😊

[@zulaimuhammad427]

DR Oiwoh on KZbin channel is very professional. Takes time to explain things, resolve health issues. HIGHLY Grateful for his experience & wide range of knowledge….

[@princeamaechi4211]

Thank you Dr edos for the great miracle you did for helping me cure my Cancer I really appreciate...