Cambridge Encyclopedia :: Cambridge Encyclopedia Vol. 80

William F(orsyth) Sharpe

Economist, born in Cambridge, Massachusetts, USA. He taught at Washington, Irvine, and Stanford (from 1970) universities. He shared the 1990 Nobel Prize for Economics for his contributions to the corporate finance field, particularly his studies in financial decision-making under uncertainty.

William Forsyth Sharpe (born June 16, 1934) is Professor of Finance, Emeritus at Stanford University's Graduate School of Business and the winner of the 1990 Nobel Prize in Economics.

Dr. Sharpe taught at the University of Washington and the University of California, Irvine. He was one of the originators of the Capital Asset Pricing Model, created the Sharpe ratio for risk-adjusted investment performance analysis, contributed to the development of the binomial method for the valuation of options, the gradient method for asset allocation optimization, and returns-based style analysis for evaluating the style and performance of investment funds. He is also the recipient of a Doctor of Humane Letters, Honoris Causa from DePaul University, a Doctor Honoris Causa from the University of Alicante (Spain), a Doctor Honoris Causa from the University of Vienna and the UCLA Medal, UCLA's highest honor.

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