Age, Biography and Wiki
Eugene Fama was born on 14 February, 1939 in Boston, Massachusetts, is an American economist and Nobel laureate in Economics. Discover Eugene Fama's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. Learn How rich is he in this year and how he spends money? Also learn how he earned most of networth at the age of 85 years old?
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85 years old |
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Aquarius |
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14 February 1939 |
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14 February |
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Boston, Massachusetts |
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United States
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We recommend you to check the complete list of Famous People born on 14 February.
He is a member of famous economist with the age 85 years old group.
Eugene Fama Height, Weight & Measurements
At 85 years old, Eugene Fama height not available right now. We will update Eugene Fama's Height, weight, Body Measurements, Eye Color, Hair Color, Shoe & Dress size soon as possible.
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He is currently single. He is not dating anyone. We don't have much information about He's past relationship and any previous engaged. According to our Database, He has no children.
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Eugene Fama Net Worth
His net worth has been growing significantly in 2023-2024. So, how much is Eugene Fama worth at the age of 85 years old? Eugene Fama’s income source is mostly from being a successful economist. He is from United States. We have estimated Eugene Fama's net worth, money, salary, income, and assets.
Net Worth in 2024 |
$1 Million - $5 Million |
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Pending |
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Under Review |
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economist |
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Timeline
Eugene Francis "Gene" Fama (born February 14, 1939) is an American economist, best known for his empirical work on portfolio theory, asset pricing, and the efficient-market hypothesis.
He is currently Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.
He earned his undergraduate degree in Romance Languages magna cum laude in 1960 from Tufts University, where he was also selected as the school’s outstanding student–athlete.
Fama's MBA and PhD came from the Booth School of Business at the University of Chicago in economics and finance.
He has spent the entirety of his teaching career at the University of Chicago.
His PhD thesis, which concluded that short-term stock price movements are unpredictable and approximate a random walk, was published in the January 1965 issue of the Journal of Business, entitled "The Behavior of Stock Market Prices".
That work was subsequently rewritten into a less technical article, "Random Walks In Stock Market Prices", which was published in the Financial Analysts Journal in 1965 and Institutional Investor in 1968.
His later work with Kenneth French showed that predictability in expected stock returns can be explained by time-varying discount rates; for example, higher average returns during recessions can be explained by a systematic increase in risk aversion, which lowers prices and increases average returns.
In 1965 he published an analysis of the behavior of stock market prices that showed that they exhibited so-called fat tail distribution properties, implying extreme movements were more common than predicted on the assumption of normality.
His article "The Adjustment of Stock Prices to New Information" in the International Economic Review, 1969 (with several co-authors) was the first event study that sought to analyze how stock prices respond to an event, using price data from the newly available CRSP database.
This was the first of literally hundreds of such published studies.
In an article in the May 1970 issue of the Journal of Finance, entitled "Efficient Capital Markets: A Review of Theory and Empirical Work", Fama proposed two concepts that have been used on efficient markets ever since.
First, Fama proposed three types of efficiency: (i) strong-form; (ii) semi-strong form; and (iii) weak efficiency.
They are explained in the context of what information sets are factored in price trend.
In weak form efficiency the information set is just historical prices, which can be predicted from historical price trend; thus, it is impossible to profit from it.
Semi-strong form requires that all public information is reflected in prices already, such as companies' announcements or annual earnings figures.
Finally, the strong-form concerns all information sets, including private information, are incorporated in price trend; it states no monopolistic information can entail profits, in other words, insider trading cannot make a profit in the strong-form market efficiency world.
Second, Fama demonstrated that the notion of market efficiency could not be rejected without an accompanying rejection of the model of market equilibrium (e.g. the price setting mechanism).
This concept, known as the "joint hypothesis problem", has ever since vexed researchers.
Market efficiency denotes how information is factored in price, Fama (1970) emphasizes that the hypothesis of market efficiency must be tested in the context of expected returns.
The joint hypothesis problem states that when a model yields a predicted return significantly different from the actual return, one can never be certain if there exists an imperfection in the model or if the market is inefficient.
Researchers can only modify their models by adding different factors to eliminate any anomalies, in hopes of fully explaining the return within the model.
The anomaly, also known as alpha in the modeling test, thus functions as a signal to the model maker whether it can perfectly predict returns by the factors in the model.
However, as long as there exists an alpha, neither the conclusion of a flawed model nor market inefficiency can be drawn according to the Joint Hypothesis.
Fama (1991) also stresses that market efficiency per se is not testable and can only be tested jointly with some model of equilibrium, i.e. an asset-pricing model.
In recent years, Fama has become controversial again, for a series of papers, co-written with Kenneth French, that challenge the validity of the Capital Asset Pricing Model (CAPM), which posits that a stock's beta alone should explain its average return.
These papers describe two factors in addition to a stock's market beta which can explain differences in stock returns: market capitalization and relative price.
They also offer evidence that a variety of patterns in average returns, often labeled as "anomalies" in past work, can be explained with their Fama–French three-factor model.
In 2013, he shared the Nobel Memorial Prize in Economic Sciences jointly with Robert J. Shiller and Lars Peter Hansen.
The Research Papers in Economics project ranked him as the 9th-most influential economist of all time based on his academic contributions,.
He is regarded as "the father of modern finance", as his works built the foundation of financial economics and have been cited widely.
Fama was born in Boston, Massachusetts, the son of Angelina (née Sarraceno) and Francis Fama.
All of his grandparents were immigrants from Italy.
Fama is a Malden Catholic High School Athletic Hall of Fame honoree.
In 2013, he was awarded the Nobel Memorial Prize in Economic Sciences.
Fama house, one of the University of Chicago's student houses, is named after Eugene Fama.
Fama is most often thought of as the father of the efficient-market hypothesis, which began with his PhD thesis.