William F. Sharpe

@Intellectuals & Academics, Family and Childhood ★ ★ ★ ★ ★ William Forsyth Sharpe is an American economist who received the Nobel Memorial Prize for Economic Sciences for developing the ‘Capital Asset Pricing Model’ American Intellectuals & Academics Economists Gemini Celebrities William Forsyth Sharpe is an American economist who received the Nobel Memorial Prize for Economic Sciences for developing the ‘Capital Asset Pricing Model’. He created a measure for the performance analysis of investments known as the ‘Sharpe Ratio’. He also developed a ‘binomial method’ for evaluating options, a method for the optimization of asset allocation and a method for evaluating the performance of investments based on returns. He started with Harry Markowitz’s ‘portfolio theory’ and developed the ‘Capital Asset Pricing Model’ or CAPM. This model could be followed by all types of investors irrespective of whether the portfolio contained a large number of risky assets or it was weighed down by riskless assets such as insured bank deposits. He suggested the value ‘beta’ as the measure of risk that cannot be mitigated in a portfolio. This meant that if the ‘beta’ value of the portfolio was 1.5, then the value of the portfolio could rise by 15 percent if the stock market rose by 10 percent. Conversely the value could go down by 15 percent if there was a reduction of 10 percent in the stock market. This became a standard of evaluating the accumulated return of all the shares in the portfolio.

Personal Details

Birthday: June 16, 1934 Nationality: American Famous: Intellectuals & Academics, Economists Spouses: Kathryn Known as: William Forsyth Sharpe Childrens: Deborah, Jonathan Birth Place: Boston, Massachusetts, U.S. Information Detail Birthday June 16, 1934 Nationality American Famous Intellectuals & Academics, Economists Spouses Kathryn Known as William Forsyth Sharpe Childrens Deborah, Jonathan Birth Place Boston, Massachusetts, U.S. Gender Male Sun Sign Gemini Born in Boston, Massachusetts, U.S. Famous as Economist

Boston, Massachusetts, U.S.

William F. Sharpe born at Unsplash Birth Place

William Sharpe got married to Kathryn, a well-known painter, in 1986. Unsplash Personal Life

They have a daughter named Deborah and a son named Jonathan from the marriage. Unsplash Personal Life

William Sharpe was born in Boston, Massachusetts, USA on June 16, 1934. Unsplash Childhood & Early Life

William had his schooling at the ‘Riverside Polytechnic High School’ and graduated in 1951. Unsplash Childhood & Early Life

He joined the ‘University of California at Berkeley’ in 1951 in order to study medicine. Unsplash Childhood & Early Life

Before the first year was over he decided to study Business Administration instead and joined the ‘University of California at Los Angeles’. Unsplash Childhood & Early Life

Out of the two main subjects of accountancy and economics he decided to major in economics as he found accountancy to be too plain. Unsplash Childhood & Early Life

In 1961 William Sharpe moved to Seattle and joined the ‘University of Washington’ as professor of finance in the ‘School of Business’. Unsplash Career

While teaching at this university, he started his research on asset pricing and came up with the ‘Capital Asset Pricing Model’ or CAPM. Unsplash Career

He remained with the University of Washington up to 1968 except for a year when he took leave to work for the Rand Corporation. Unsplash Career

He moved to the ‘University of California at Irvine’ in 1968. He remained at this university for only a couple of years. Unsplash Career

He moved to the ‘Stanford University’ in 1970 and joined the ‘Graduate School of Business’ where, other than teaching, he continued his research. Unsplash Career

William Sharpe published the papers ‘A Simplified Model for Portfolio Analysis’ in 1963 and ‘Capital Asset Prices – A Theory of Market Equilibrium Under Conditions of Risk’ in 1964. Unsplash Major Works

His book ‘Portfolio Theory and Capital Markets’ was published in 1970 and 2000 while his second book ‘Asset Allocation Tools’ was published in 1987. Unsplash Major Works

His next two books ‘Investments’ and ‘Fundamentals of Investments’ in collaboration with Jeffrey Bailey and Gordon J. Alexander were published in 1999 and 2000 respectively. The ‘William F Sharpe: Selected Works’ was published in 2012. Unsplash Major Works

Information	Detail
Birthday	June 16, 1934
Nationality	American
Famous	Intellectuals & Academics, Economists
Spouses	Kathryn
Known as	William Forsyth Sharpe
Childrens	Deborah, Jonathan
Birth Place	Boston, Massachusetts, U.S.
Gender	Male
Sun Sign	Gemini
Born in	Boston, Massachusetts, U.S.
Famous as	Economist

William F. Sharpe

American

Jun 16, 1934

Biography

Personal Details

Boston, Massachusetts, U.S.