Book Description
"The CAPM rattled investment professionals in the 1960s and its commanding importance still reverberates today." --Dow Jones Asset Management. Nearly 30 years ago, PORTFOLIO THEORY AND CAPITAL MARKETS laid the groundwork for such investment standards as modern portfolio theory, derivatives pricing and investment, and equity index funds, among others. By providing invaluable insights into the Capital Asset Pricing Model (CAPM), Dr. William Sharpe assured myself a position as one of the most influential financial minds of the twentieth century. Now, in the carefully crafted PORTFOLIO THEORY AND CAPITAL MARKETS, THE ORIGINAL EDITION, readers have the opportunity to rediscover Dr. Sharpe's genius. With its discussions of how financial markets should act--and if they act as expected, how investors should respond--its value to today's investor is perhaps greater than at any time in the past. Investors, portfolio managers, business people, and others who have relied on Dr. Sharpe's findings for over 30 years will discover strategies and tactics they previously overlooked. Students and others new to Sharpe's work will instantly discover its logic and value. PORTFOLIO THEORY AND CAPITAL MARKETS, THE ORIGINAL EDITION, complete with a new foreword written by Dr. Sharpe, reintroduces this essential book, places its lessons in a meaningful context for modern investors throughout the world, and provides timeless insights that are well worth revisiting today.
Back Cover copy
Winner of the 1990 Nobel Prize for Economics. The Classic Work That Taught a Generation How to Invest. From its early-1960s genesis as his doctoral dissertation topic, William Sharpe's Capital Asset Pricing Model (CAPM) became a linchpin of modern investment theory. By explaining that every investment carries two distinct risks--the systematic risk of being in the market along with the unsystematic risk related to a company's fortunes--the CAPM presented a quantifiable and sophisticated, yet understandable, model for measuring portfolio risk along with the return an investor can expect for taking that risk. Portfolio Theory and Capital Markets, published in 1970, introduced CAPM to a much wider audience and established Dr. Sharpe as a giant of financial thought. Today, McGraw-Hill proudly reintroduces the meticulously detailed Portfolio Theory and Capital Markets: The Original Edition. Virtually unchanged from the original edition, but with a new introduction from Dr. Sharpe to discuss the CAPM's impact and describe its place in today's markets, this edition is as important for its historical significance as for its still-vital treatment of investing and risk. William Sharpe's Portfolio Theory and Capital Markets was the first book to consolidate centuries of pricing and risk knowledge into one concise, easy-to-understand, and dramatically effective approach. Take this opportunity to add McGraw-Hill's classic collector's edition to your library, and rediscover why Dr. Sharpe's unprecedented insights into the uncertainties and interrelationships of pricing and risk hold as much
