William Sharpe

Research Statement

Professor Sharpe’s research interests focus on macro-investment analysis, equilibrium in capital markets and the provision of income in retirement.

Bio

William F. Sharpe is the STANCO 25 Professor of Finance, Emeritus, at Stanford University’s Graduate School of Business. He joined the Stanford faculty in 1970, having previously taught at the University of Washington and the University of California at Irvine. In 1996, he cofounded Financial Engines, a firm that provides online investment advice and management for individuals.

Sharpe was one of the originators of the Capital Asset Pricing Model, developed the Sharpe Ratio for investment performance analysis, 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.

Sharpe has published articles in a number of professional journals, including Management Science, The Journal of Business, The Journal of Finance, The Journal of Financial Economics, The Journal of Financial and Quantitative Analysis, The Journal of Portfolio Management, and The Financial Analysts’ Journal.

He has also written seven books, including Portfolio Theory and Capital Markets (McGraw-Hill, 1970 and 2000), Asset Allocation Tools (Scientific Press, 1987), Fundamentals of Investments (with Gordon J. Alexander and Jeffrey Bailey, Prentice-Hall, 2000), Investments (with Gordon J. Alexander and Jeffrey Bailey, Prentice-Hall, 1999) and Investors and Markets, Portfolio Choices, Asset Prices and Investment Advice, Princeton University Press, 2007.

Sharpe is past president of the American Finance Association. In 1990 he received the Nobel Prize in Economic Sciences.

He received his PhD, MA and BA in Economics from the University of California at Los Angeles. 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 (Austria), and the UCLA Medal, UCLA’s highest honor.

Academic Degrees

• PhD in Economics, UC Los Angeles, 1961
• MA in Economics, UC Los Angeles, 1956
• BA in Economics, UC Los Angeles, 1955

Academic Appointments

• At Stanford University since 1970, Emeritus since 1999
• Professor, University of California, Irvine, 1968-1970
• Associate Professor, University of Washington, 1961-1968

Professional Experience

• Economist, RAND Corp., 1956-1961

Awards and Honors

• Wharton Jocobs Levy Prize for Quantative Financial Innovation, 2016
• Nobel Memorial Prize in Economic Science, The Nobel Foundation, 1990

In the Media

Tracking Mutual Funds: What Drives Performance

Knowledge at Wharton, May 10, 2016

Investors, Start Your Engines

Worth, January 2008

An Issue of Risk and Return

National Post, May 4, 2004

Betting on Trouble

Boston Globe, September 2003

Stocks vs. Bonds: A Risk Scoreboard

New York Times, July 30, 2002

Tap into Some Ivory-Tower Brains

BusinessWeek, June 26, 2002

The Newsletter

Seattle Times, June 2, 2002

PowerMarket Announces Expert Advisory Board

Business Wire, November 30, 2001

Nobel Laureates to Speak at Daylong Public Symposium

Stanford Report, October 5, 2001

Getting 401(k) Investing Advice Online

San Francisco Chronicle, April 9, 1999

The Godfather of Index Funds

Bloomberg Businessweek, August 20, 1998

Economists Seek to Improve Advice on How to Invest Pension Money

Stanford Report, May 15, 1998

Time for Retirement Software to Get Real

Fortune, April 16, 1998

Not Alpha or Omega: Risk, Small Caps and Beta

New York Times, April 8, 1998

The Dawn of Online Financial Advice

San Jose Mercury News, January 1998

The Sharpe End of Economic Modeling

Financial Times, January 1990

Insights by Stanford Business

writtenWilliam Sharpe: How to Invest In a Turbulent Market

April 18, 2013

A Nobel Prize winner says preparing for retirement means keeping an eye on investment costs and not looking to the market for sympathy.

writtenWilliam Sharpe: Staying Flexible on Retirement Spending

April 1, 2010

Research looks at how workers can be sure to save enough to retire.

writtenNobel Laureate Sharpe: There Are No Shortcuts in Investing

October 1, 2009

Nobel Laureate William F. Sharpe explains how futile it is to read sure-thing investing books or watch the latest financial guru to find easy answers.