Harry Markowitz

@Intellectuals & Academics, Timeline and Childhood ★ ★ ★ ★ ★ Harry Max Markowitz is an American economist who won the Nobel Prize in Economic Sciences in 1990 American University Of Chicago Intellectuals & Academics Economists Virgo Celebrities Harry Max Markowitz is an American economist who won the Nobel Prize in Economic Sciences for his contribution to the field of financial economics. He shared the prize money with two other American economists, Merton H. Miller and William F. Sharpe. His research opened up a completely new field of study related to financial economics where the effect of risks, diversification and correlation were very important. Markowitz had already developed a portfolio theory in the early 1950s on the ways in which returns on investments could be optimized. Economists at that time stressed on diversification of portfolios and were against putting all their money in one place. Markowitz came up with ways to measure the risk involved for each security and how to make a combined portfolio that could bring maximum returns for the risk taken. He showed how two shares, both having equally high risks and high returns, can be combined in a portfolio to lower the overall risk. This could be possible if the price of one share had a tendency to fall when the other rose thus minimizing the total risk while keeping the level of returns quite high. Makowitz’s idea caught on very fast and all portfolio managers and investors started to use this technique to keep the money flowing into their bank accounts.

Personal Details

Birthday: August 24, 1927 Nationality: American Famous: University Of Chicago, Intellectuals & Academics, Economists Spouses: Barbara Known as: Harry Max Markowitz Universities: University Of Chicago Notable Alumnis: University Of Chicago Information Detail Birthday August 24, 1927 Nationality American Famous University Of Chicago, Intellectuals & Academics, Economists Spouses Barbara Known as Harry Max Markowitz Universities University Of Chicago Notable Alumnis University Of Chicago Birth Place Chicago, Illinois, USA Gender Male Father Morris Markowitz Mother Mildred Markowitz Net Worth $737 million as of May 16,2016 Sun Sign Virgo Born in Chicago, Illinois, USA Famous as Economist

Chicago, Illinois, USA

Harry Markowitz born at Unsplash Birth Place

Harry Markowitz is married to Barbara and they live in Chicago, Illinois, as a retired professor of economics. Unsplash Personal Life

He still gives lectures on portfolio management at various forums. Unsplash Personal Life

Harry Markowitz was born in Chicago, Illinois, USA on August 24, 1927 to Morris Markowitz and Mildred Markowitz. They owned a small grocery store in Chicago. He was the only child of his parents. Unsplash Childhood & Early Life

He acquired a love for philosophy and physics during his days in high school. Unsplash Childhood & Early Life

He joined the ‘University of Chicago’ and earned his B.Phil degree from there in 1947. During this period he became interested about the uncertainties that were attached to investments in the share market. Unsplash Childhood & Early Life

He continued with his studies at the university and specialized in economics. He was greatly influenced by famous economists such as Jacob Marschak, Leonard Savage and others. He earned his M.A. degree from the university in 1950. Unsplash Childhood & Early Life

He received an invitation to join the ‘Cowles Commission for Research in Economics’ located in Chicago while he was still a student. Unsplash Childhood & Early Life

Harry Markowitz joined the RAND Corporation in 1952 and started working with George Dantzig on the development of a ‘critical line algorithm’ that would help in the optimization of the mean-variance in the portfolios. This came to be known as the ‘Markowitz frontier’. He developed an algorithm for identifying the portfolios that would have shares with the greatest amount of optimization. Unsplash Career

He spent a year from 1955 to 1956 at the ‘Cowles Foundation’, Yale University. During this time he worked on his algorithm which was published it in 1956 and on his book on the allocation of portfolio which came out in 1959. Unsplash Career

He returned to the RAND Corporation in 1960 and helped develop a programming language called ‘SIMSCRIPT’ which was the first ‘simulation programming language’ of its kind. Unsplash Career

He founded the ‘California Analysis Center’ on July 17, 1962 with the help of Herb Karr which later became the ‘CACI International’. Unsplash Career

He joined the ‘Arbitrage Management Company’ in 1968 and created a hedge fund with the help of Robert Merton and Paul Samuelson which is supposed to be the first ever attempt to conduct arbitrage trading with the help of computers. He became the CEO of this company in 1970. He left the company in 1971 after it was bought by Stuart & Co. Unsplash Career

Harry Markowitz published his first book ‘Portfolio Selection’ in 1952. Unsplash Major Works

His next book was titled ‘Portfolio Selection: Efficient Diversification of Investments’ which came out in 1959. Unsplash Major Works

Information	Detail
Birthday	August 24, 1927
Nationality	American
Famous	University Of Chicago, Intellectuals & Academics, Economists
Spouses	Barbara
Known as	Harry Max Markowitz
Universities	University Of Chicago
Notable Alumnis	University Of Chicago
Birth Place	Chicago, Illinois, USA
Gender	Male
Father	Morris Markowitz
Mother	Mildred Markowitz
Net Worth	$737 million as of May 16,2016
Sun Sign	Virgo
Born in	Chicago, Illinois, USA
Famous as	Economist

Harry Markowitz

American

Aug 24, 1927

Biography

Personal Details

Chicago, Illinois, USA