William F. Sharpe

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William F. Sharpe
BornJune 16 , 1934
Boston, Massachusetts
Alma materUCLA
Known forCapital asset pricing model
Notable work
Sharpe, William F. (1964). "Capital Asset Prices – A Theory of Market Equilibrium Under Conditions of Risk". Journal of Finance. pp. 425–42. Retrieved March 10, 2021.
AwardsNobel Memorial Prize in Economics (1990)
James R. Vertin Award (1996)
WebsiteWeb page

William F. Sharpe is the Stanco 25 Professor of Finance, Emeritus at the Graduate School of Business, Stanford University. He is a Founder of Financial Engines, Inc., and a winner of the Nobel Prize in Economic Sciences, 1990.[1] Sharpe is noted for developing the Capital Asset Pricing Model (CAPM)[2] and is also the creator of the Sharpe ratio.[3]

Studies on investing

Sharpe has rendered studies on various aspects of investing.

Sharpe's brief paper, The Arithmetic of Active Management [4] is often cited as an elegant argument in favor of passive management. The emphasis on the importance of cost management is continued in Sharpe's 2013 paper, The Arithmetic of Investment Expenses.[5]

Under plausible conditions, a person saving for retirement who chooses low-cost investments could have a standard of living throughout retirement more than 20% higher than that of a comparable investor in high-cost investments.

— from the abstract of The Arithmetic of Investment Expenses

Sharpe was an early advocate of portfolio style analysis.[6]

His most recent research takes issue with the paradigm of set asset allocations, rebalanced back to policy allocations in contrarian style, by arguing for adaptive asset allocation policies that adapt as the relative market values of major asset classes change.[7]


Sharpe has been awarded Graham and Dodd Scroll awards for numerous papers.[8] In 1996 Sharpe received the James R. Vertin Award in recognition of his having produced a body of research notable for its relevance and enduring value to investment professionals.[9]

Year Award Study
2013 Graham and Dodd Scroll The Arithmetic of Investment Expenses[10]
2010 Graham and Dodd Scroll Adaptive Asset Allocation Policies[11]
2007 Graham and Dodd Scroll Expected Utility Asset Allocation[12]
1988 Graham and Dodd Scroll Dynamic Strategies for Asset Allocation[13]
1987 Graham and Dodd Scroll Integrated Asset Allocation[14]
1973 Graham and Dodd Scroll Bonds versus Stocks: Some Lessons from Capital Market Theory[15]

See also


  1. Nobelprize.org, The Official Web Site of the Nobel Prize
  2. Sharpe, William (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance. Blackwell Publishing Ltd. pp. 425–442.
  3. Sharpe, William F. (Fall 1994). "The Sharpe Ratio". The Journal of Portfolio Management.
  4. Sharpe, William F. (Fall 1991). "The Arithmetic of Active Management". The Financial Analysts' Journal Vol. 47, No. 1, January/February pp.7-9.
  5. The Arithmetic of Investment Expenses | Stanford Graduate School of Business
  6. Sharpe, William F. (Winter 1992). "Asset Allocation: Management Style and Performance Measurement". Journal of Portfolio Management , pp. 7-19.
  7. Adaptive Asset Allocation Policies
  8. "Graham and Dodd Award Winners". CFA Institute. Retrieved December 14, 2015.
  9. "James R. Vertin Award". CFA Institute. Retrieved January 4, 2016.
  10. Sharpe, William F. (2013). The Arithmetic of Investment Expenses. Financial Analysts Journal. CFA Institute.
  11. Sharpe, William F. (2013). Adaptive Asset Allocation Policies. Financial Analysts Journal. CFA Institute. pp. 45–59.
  12. Sharpe, William F. (2007). Expected Utility Asset Allocation. Financial Analysts Journal. CFA Institute. pp. 18–30.
  13. Perold, Andre F.; Sharpe, Wiilaim F. (1988). Dynamic Strategies for Asset Allocation. Financial Analysts Journal. Association for Investment Management and Research. pp. 16–27.
  14. Sharpe, William F. (1987). Integrated Asset Allocation. Financial Analysts Journal. Association for Investment Management and Research. pp. 25–32.
  15. Sharpe, William F. (1973). Bonds versus Stocks: Some Lessons from Capital Market Theory. Financial Analysts Journal. Association for Investment Management and Research. pp. 74–80.

External links