Stephen Ross (economist)

Stephen Alan Ross ( born 1944 in Boston, Massachusetts) is an American economist and financial mathematicians. His name is closely associated with the development of arbitrage and option pricing theory.

Career, teaching and research

Ross studied at the California Institute of Technology, he left as a Bachelor of Science degree in 1965 with a major in physics. Five years later, he graduated as a Ph.D. at Harvard University. First he went to the Wharton School of the University of Pennsylvania. In 1976 he accepted a position at Yale University, where he took over the Sterling Professor of Economics and Public Finance. Since 1998, he occupied the Franco Modigliani - Chair of Finance and Economics at the Massachusetts Institute of Technology in Boston.

Since the 1970s, Ross made ​​a name in public finance. His main focus lies in the area of ​​portfolio theory, investment management and corporate valuation. He promoted with a number of innovations to the field of finance. Initially he promoted in the mid-1970s with the thought of arbitrage and arbitrage freedom against the Capital Asset Pricing Model of simple -to-use model, he seemed the end of the decade, especially in collaboration with John Carrington Cox and Mark Rubinstein to develop a discrete model for the modeling of investment and equity price developments. The binomial model is often called Cox-Ross- Rubinstein model. Later he was also involved in the development of a continuous model, this time standing next to him Jon Cox Ingersoll aside. Even the so-called Cox - Ingersoll- Ross model, in which the authors resorted to a root diffusion process to describe the development of short-term interest rates, has developed into a standard model on the market.

2014 Ross was awarded the Morgan Stanley - American Finance Association Award for Excellence in Finance.