All models have faults - that doesnt mean you cant use them as tools for making decisions.

I was involved with Wells Fargo Bank as a consultant in the late 1960s and early 1970s, when I suggested to them that they develop a product that has become known as index funds.

Every side of a coin has another side.

Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.

All models have faults - that doesnt mean you cant use them as tools for making decisions.

I'm a theorist, not an institutionalist.

My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of derivative securities.