Predicting how stock prices will rise or fall, everybody knows, is worth a fortune. Understanding the predictability of stock prices, too, can net you a pretty rich dividend, as Eugene Fama, Lars Peter Hansen, and Robert Schiller can tell you this morning. The three have together won the 2013 Sveriges Riksbank Prize in Economic Sizes in Memory of Alfred Nobel (informally, the Nobel prize in economics) “for their empirical analysis of asset prices”. (1)
Predicting how stocks will behave, so that all investors buy them and – as a result – make them behave differently.
Power to the people! (or… statistics)