Modern Portfolio Theory

Stanford economist William Sharpe won the 1990 Nobel Memorial Prize in economics for developing a theory of price formation for financial assets -- the Capital Asset Pricing Model -- that revolutionized the investment world. Sharpe's theoretical model is widely used in asset allocation and evaluation of investment performance.

Related Information:

William Sharpe's homepage

More on Nobelist Sharpe and Stanford's other Nobel Prize winners (Stanford Report, 10/3/01)