In this week’s episode, EconTalk host Russ Roberts sat down with Duke University’s Campbell Harvey to discuss his research on various investment strategies.

Here are some follow-up questions–please share your response in the Comments. We love to hear from you, and as always, please help us continue the conversation.

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1. At approximately the twenty-eight minute mark, Roberts asks Harvey whether he thinks “black swans” can inform investment decisions. (Brush up on what is meant by “black swans” in this episode with Nassim Taleb.) How does Harvey respond, and to what extent are you convinced by his answer? Would such a strategy correctly take your preferences into account?

2. How does Harvey’s critique of the 2 sigma standard compare to Ed Leamer’s critique of the state of econometrics research? Consider how research in economics might be different from finance? Do investment managers have a greater stake in research methods than academics?
Do investment managers have a greater stake in research methods than academics?

3. This week’s episode offered a lot of tidbits for the casual investor, not just institutional ones. What did you take away from this week’s conversation that you believe can help in your personal financial decisions? Explain.