Abstract
The two-decade period from 1952 to 1972 created a revolution in finance theory. However, the modern era in finance started slowly. Harry Markowitz had developed the Modern Portfolio Theory, which, while intuitively appealing, was nearly impossible to apply because of limitations in computing power. Indeed, Modern Portfolio Theory was not even taught at the business school of its creation until the great mind Eugene Fama began teaching there. Nor was its intuition immediately obvious until James Tobin, the great mind described in the next part of this book, created a new interpretation based on a risk-free asset.
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© 2013 Colin Read
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Read, C. (2013). The Times. In: The Efficient Market Hypothesists. Great Minds in Finance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137292216_18
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DOI: https://doi.org/10.1057/9781137292216_18
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32435-4
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