Eugene Fama

Francis Eugene Fama ( born February 14, 1939 in Boston) is an American economist who has worked for influential contributions portfolio theory. It was in 2013 - awarded the Prize of the Swedish Riksbank Economic Sciences in Memory of Alfred Nobel - Robert J. Shiller and together with Lars Peter Hansen.

Life and work

Fama studied Romance languages ​​and acquired in 1960 the Bachelor at Tufts University. Then he moved to the Graduate School of Business, University of Chicago, where he made ​​his MBA in 1963 and 1964 with the work The Behavior of Stock Market Prices for Ph.D. received his doctorate. His doctoral supervisor was Benoît Mandelbrot. Fama was there assistant professor ( 1963-65 ), associate professor ( 1966-68 ), Professor ( 1968-73 ), Theodore O. Yntema, professor ( 1973-84 ), Theodore O. Yntema - Distinguished Service Professor ( 1984-93 ) and since 1993 has been the Robert R. McCormick Distinguished - service Professor of Economics. His time in Chicago was only interrupted by a visiting professor at the Katholieke Universiteit Leuven ( 1975-76 ) and the University of California, Los Angeles ( 1982-95 always in winter).

Already in his dissertation attempted to show that stock prices are not predictable, but are subject to random motions Fama. Later he worked both theoretically and empirically in the field of portfolio theory and pricing. In 1970 he coined the term efficient market hypothesis.

In the 1990s, he co-wrote with Kenneth French, a series of essays that questioned the validity of the Capital Asset Pricing Model (CAPM ) in question. This model states that only has the beta as stock-specific variables affect the expected return of the stock. In their essays, both authors portray that even factors such as market capitalization and the ratio of book value and market value of equity affect the expected return of the stock next to the beta of the stock. These results lead to an extension of the Capital Asset Pricing Model to the Fama - French three- factor model.

Fama comes from a family of Italian immigrants, is married and has four children. His hobbies include windsurfing, golf, tennis, cycling, old movies and opera.

Publications

Fama published around 100 articles and two books:

  • With Merton H. Miller: The Theory of Finance. Holt, Rinehart & Winston, New York [u a ] 1972, ISBN 0-03-086732-0
  • Foundations of Finance. Portfolio Decisions and securities prices. Basic Books, New York 1976, ISBN 0-465-02499-8

Prices

Memberships

Master of Business Administration Random Walk Equity (finance) Fama–French three-factor model Merton Miller DePaul University Capital market Corporate Finance Deutsche Bank Prize in Financial Economics CFA Institute American Finance Association#Morgan Stanley-AFA Award for Excellence in Finance Phi Beta Kappa Society Journal of Financial Economics Digital Object Identifier Integrated Authority File
318922
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