Capital Ideas: The Improbable Origins of Modern Wall StreetCapital Ideas traces the origins of modern Wall Street, from the pioneering work of early scholars and the development of new theories in risk, valuation, and investment returns, to the actual implementation of these theories in the real world of investment management. Bernstein brings to life a variety of brilliant academics who have contributed to modern investment theory over the years: Louis Bachelier, Harry Markowitz, William Sharpe, Fischer Black, Myron Scholes, Robert Merton, Franco Modigliani, and Merton Miller. Filled with in-depth insights and timeless advice, Capital Ideas reveals how the unique contributions of these talented individuals profoundly changed the practice of investment management as we know it today. |
Contents
| 1 | |
| 15 | |
| 17 | |
PART II | 39 |
Fourteen Pages to Fame | 41 |
The Interior Decorator Fallacy | 61 |
The Most Important Single Influence | 75 |
PART III | 89 |
The Bombshell Assertions ix | 163 |
1 | 164 |
17 | 175 |
Risky Business | 181 |
41 | 198 |
The Universal Financial Device | 203 |
PART V | 231 |
The Accountant for Risk | 253 |
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Common terms and phrases
academic analysis arbitrage Asset Pricing Model average Bachelier bank behavior beta billion Black and Scholes bonds Business School Capital Asset Pricing CAPM cash Chicago clients corporate finance cost Cowles Cowles Commission developed diversification Dividend Discount Model dividends Dow Theory earning economics economists equity Eugene Fama expected return Fama Fargo Financial Analysts Journal Fischer Black folio forecasts Fouse future Harry Markowitz ideas index fund Institutional Investor investment management Ito's lemma Jack Treynor Keynes Leland mathematics McQuown ment Merton Miller Modigliani and Miller mutual fund Myron Scholes Nobel Osborne paper Paul Samuelson PC&I pension funds percent performance portfolio insurance portfolio management portfolio selection predicting premium put option random risk Rosenberg Rubinstein Samuelson security analysts sell sellers shares Sharpe Sharpe's Stock Exchange stock market stock prices strategy theoretical tion Tobin trading transactions Treynor Vertin volatility Wall Street warrants Williams York