The Evidence-Based Investor

William Sharpe: My original CAPM thesis was rejected

Posted by Robin Powell on June 7, 2017

One of the things I like about writing about evidence-based investing is hanging out with some extraordinarily clever people.

One of my happiest professional of recent years was spending a fascinating afternoon at the home of Professor William F. Sharpe in Carmel, California, interviewing him about his life and work and, of course, the famous CAPM — the Capital Asset Pricing Model — for which he was awarded the Nobel Prize.

Barry Ritholtz has just done a long interview with this legend of academic finance for his excellent podcast series for Bloomberg, Masters in Business, which I can highly recommend.

OK, it gets very technical in places, but it’s well worth a listen. The many highlights include the revelation that Bill’s original PhD thesis, which formed the basis of his Nobel-winning work, was originally rejected for publication because it wasn’t considered relevant!

Now aged 82, Professor Sharpe is still hard at work, and in the podcast he talks in detail about the subject he’s currently focused on — Rismat, or Retirement Income Scenario Matrices — which he describes as “the thorniest problem in finance”.

Podcast: Barry Ritholtz interviews William Sharpe

 

Related post:

The basic arithmetic the fund industry won’t acknowledge

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Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector. Regis Media.

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