FAIRFAX, Va., June 17 -- George Mason University issued the following news release:
Financial markets are governed by a combination of rational and irrational forces, statistical probabilities, and "animal spirits." It takes fluency in both to understand the market, let alone to beat it. Yet market actors, including asset traders, now frequently use machine-learning techniques to help generate predictions of future asset prices.
Scholars suchasBo Hu, assistant professor of finance at the Costello College of Business at George Mason University, are researching how these machine-learning tools are changing the decision-making processes that move the market, for better or worse.
The subject of Hu's recent paperinManagement Science is a well...