EUGENE FAMA AWARDED NOBEL PRIZE

As you may have heard in the media, Professor Eugene Fama was awarded the Nobel Prize in Economic Sciences, along with Lars Peter Hansen and Robert J. Shiller.  Professor Fama’s research on efficient market hypothesis was the impetus for the founding of Dimensional Fund Advisors, which MSC utilizes in our clients’ portfolios.  Professor Fama currently serves as a director and consultant for DFA.  We have a strong relationship with DFA and are honoured to be associated with the most recent Nobel Laureate and whom we have heard him speak numerous times at many of our educational sessions.

The news release from the Royal Academy of Sciences states: “Beginning in the 1960s, Eugene Fama and several collaborators demonstrated that stock prices are extremely difficult to predict in the short run, and that new information is very quickly incorporated into prices. These findings not only had a profound impact on subsequent research but also changed market practice. The emergence of so-called index funds in stock markets all over the world is a prominent example.”

For a further look at Professor Fama’s career follow this link

Text Size: S M L
Print This Page Print This Page