William Sharpe

Asset Prices and Portfolio Choice

Friday, 3 September 2004
11:30 - 12:05 hrs CEST


Capital markets are places where people trade financial assets. The terms on which such trades are made constitute asset prices. An investor's goal is to make trades that will provide the most suitable portfolio, given his or her position, preferences and predictions. This lecture will describe a simulation program that can be used to investigate ways in which people's positions, preferences and predictions can interact, given available financial securities, to determine both asset prices and portfolio choices.

Related Laureates