William Sharpe, 1990 co-winner of the Nobel Prize in economics, is one of the founders of the modern theory of finance. His most famous work involves the development of the capital asset pricing model (CAPM), which is now one of the fundamental tools for understanding equilibrium risk–return relationships for different assets.
Capital asset pricing model Euler equations Finance Markowitz, H.M. Mean variance analysis Miller, M. Risk and return Sharpe, W.S. Sharpe ratio Single factor models Single index models
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Varian, H. 1993. A portfolio of Nobel Laureates: Markowitz, Miller, and Sharpe. Journal of Economic Perspectives 7(1): 159–169.CrossRefGoogle Scholar