Investments by William F. SharpeThe subject matter for this edition of Investments has evolved considerably since 1978 when the first edition was published. For example, in the last several years international investing has expanded rapidly, securities such as swaps and mortgage derivatives have become increasingly popular, and investors have placed much more emphasis on investment styles. The task of the authors has been to keep Investments fresh and stimulating and to continue the tradition of this text to offer students and instructors the most thorough and most current survey of the investment environment.
In Investors and Markets , Nobel Prize-winning financial economist William Sharpe shows that investment professionals cannot make good portfolio choices unless they understand the determinants of asset prices. But until now asset-price analysis has largely been inaccessible to everyone except PhDs in financial economics. In this book, Sharpe changes that by setting out his state-of-the-art approach to asset pricing in a nonmathematical form that will be comprehensible to a broad range of investment professionals, including investment advisors, money managers, and financial analysts. Bridging the gap between the best financial theory and investment practice, Investors and Markets will help investment professionals make better portfolio choices by being smarter about asset prices. Based on Sharpe's Princeton Lectures in Finance, Investors and Markets presents a method of analyzing asset prices that accounts for the real behavior of investors. Program users can then analyze the final portfolios and asset prices, see expected returns, and measure risk.
William Forsyth Sharpe is an American economist who won the Nobel Prize in Economic Sciences, along with Harry Markowitz and Merton Miller , for developing models to assist with investment decision making. Sharpe is well known for developing the capital asset pricing model CAPM in the s. The CAPM describes the relationship between systematic risk and expected returns, and states that taking on more risk is necessary to earn a higher return. He is also known for creating the Sharpe ratio , a figure used to measure the risk-to-reward ratio of an investment. William Forsyth Sharpe was born in Boston on June 6, He and his family eventually settled in California, and he graduated from Riverside Polytechnic High School in After several false starts in deciding what to study at college, including abandoned plans to pursue medicine and business administration, Sharpe decided to study economics.