Sharpe, William Forsyth

Sharpe, William Forsyth,

1934–, American economist, b. Boston, Mass., Ph.D. Univ. of California, Los Angeles, 1961. After working at the Rand Corporation, he taught at the Univ. of Washington (1961–68) and Univ. of California, Irvine (1968–70) before joining the faculty at Stanford (emeritus since 1999). Sharpe has devoted his career to the study and understanding of financial investing. He was one of the developers of the capital asset pricing model (CAPM) and developed the Sharpe ratio for analyzing investment performance and other investment tools. For his work on CAPM he shared the 1990 Nobel Memorial Prize in Economic Sciences with Harry MarkowitzMarkowitz, Harry
, 1927–, American economist, Ph.D. Univ. of Chicago, 1954. In the 1950s he developed a theory of "portfolio choice," which allows investors to analyze risk as well as their expected return.
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 and Merton MillerMiller, Merton H.,
1923–2000, American economist, grad. Harvard, 1943, Ph.D. Johns Hopkins, 1952. A professor at Carnegie-Mellon Univ. (1953–61) and the Univ.
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. Sharpe also has founded and worked for a number of investment advice and management firms since 1986.

Sharpe, William Forsyth

(1934– ) economist; born in Cambridge, Mass. He is best known for his work in investment management analysis, and especially for his capital asset pricing model. From 1970 he taught at Stanford University Graduate School of Business as the Timken Professor of Finance.