• book

From the Publisher

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. Sharpe makes this technique accessible through a new, one-of-a-kind computer program (available for free on his Web site, at http://www.stanford.edu/~wfsharpe/apsim/index.html) that enables users to create virtual markets, setting the starting conditions and then allowing trading until equilibrium is reached and trading stops. Program users can then analyze the final portfolios and asset prices, see expected returns, and measure risk.

In addition to popularizing the most sophisticated form of asset-price analysis, Investors and Markets summarizes much of Sharpe's most important previous work and reflects a lifetime of thinking about investing by one of the leading minds in financial economics. Any serious investment professional will benefit from Sharpe's unique insights.

Topics: Money Management , Wealth, Stock Market, Informative, and Reader Guide

Published: Princeton University Press on
ISBN: 9781400830183
List price: $37.50
Read on Scribd mobile: iPhone, iPad and Android.
Availability for Investors and Markets by William F. Sharpe
With a 30 day free trial you can read online for free
  1. This book can be read on up to 6 mobile devices.

Related Articles

Money
2 min read

Ask the Expert

INVESTING Q Is gold a good investment? —P.R., Baton Rouge A Gold’s fans advocate owning the yellow metal as a hedge against inflation and stock market disaster. But other investors, including Warren Buffett, believe it has no role in a modern portfolio. “Gold has no intrinsic value other than for jewelry and some industrial use, and it produces no income,” says Joe Heider, founder of Cirrus Wealth Management in Cleveland. Over the long term, he says, gold is no match for a diversified portfolio of stocks and bonds. Since 1986, the price of gold has increased by roughly 200%; in the same pe
Bloomberg Businessweek
3 min read

Chinese Buyers Move On From Vancouver

Katia Dmitrieva Just a few days after British Columbia announced a 15 percent tax on foreigners buying property in the Vancouver area, Seattle real estate broker Lili Shang received a WeChat message from a wealthy Chinese businessman who wanted to sell a home in Canada and buy one in her area. After a week of looking, he purchased a $1 million property in Bellevue, across Lake Washington from Seattle. He soon returned to buy two more, including a $2.2 million house in Clyde Hill paid for with a single cashier’s check. Shang says she’s been inundated with similar requests from China and Hong
Inc.
1 min read

Bode Miller: Racing With Ideas

B.S. AS A WORLD and Olympic ski champion, Bode Miller got paid to endorse skis and apparel, which made him wealthy but not satisfied. “I’d been working with companies my whole career, contributing my know-how and on-the-hill experience in product development,” he says. “But after they got what they wanted, I was left with nothing.” He considered starting his own business (“the logistics didn’t work”), but decided to buy into Bomber Ski and sportswear maker Aztech Mountain. He’s also exchanged expertise for equity at bag maker Esperos. With Bomber, the plan is to give amateurs the hot skis he