DEFINITION of 'William F. Sharpe'
An American economist who won the 1990 Nobel Prize in Economics, along with Harry Markowitz and Merton Miller, for developing models to assist with investment decision making. Sharpe's capital asset pricing model (CAPM) calculates expected returns based on varied levels of risk and states that taking on more risk is necessary to earn a higher return. Corporations, institutions and pension fund managers have all used CAPM theory to manage risk.
INVESTOPEDIA EXPLAINS 'William F. Sharpe'
Sharpe was born in Boston in 1934. He earned his PhD from the University of California at Los Angeles and has taught at the University of Washington, the University of California at Irvine and Stanford University. He has been a consultant to numerous major corporations and founded the consulting firm William F. Sharpe Associates. Sharpe also developed the Sharpe ratio, another tool for analyzing investment performance.

Sharpe Ratio
A ratio developed by Nobel laureate William F. Sharpe to measure ... 
RiskAdjusted Return
A concept that refines an investment's return by measuring how ... 
RiskFree Rate Of Return
The theoretical rate of return of an investment with zero risk. ... 
Capital Asset Pricing Model  CAPM
A model that describes the relationship between risk and expected ... 
Risk
The chance that an investment's actual return will be different ... 
Yield On Earning Assets
A financial solvency ratio that compares a financial institutionâ€™s ...

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Bonds & Fixed Income
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Personal Finance
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Investing
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Fundamental Analysis
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Active Trading Fundamentals
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Fundamental Analysis
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Economics
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Supply is the amount of goods a producer is willing to produce at a given price, and is one of the most basic concepts in economics. 
Economics
Modified Internal Rate of Return (MIRR)
Modified internal rate of return (MIRR) is a variant of the more traditional internal rate of return calculation. 
Fundamental Analysis
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The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.