The Recovery Theorem and Thoughts about the Field of Finance. Guest: Dr. Stephen Ross

April 23, 2013. Dr. Stephen Ross, Franco Modigliani Professor of Economics at MIT. Creator of the arbitrage pricing theory, agency theory, and co-creator of the binomial option pricing model. Dr. Ross discusses his new theory of recovery which he believes can obtain the market’s implied prediction of future stock prices. He also answers questions about the future of finance and what he thinks of the last 50 years of finance. Q&A Begins at: 56’09”.