O'Reilly logo

The Economics Book by

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

RG

IN CONTEXT

FOCUS

Banking and finance

KEY THINKERS

Fischer Black (1938–95)

Myron Scholes (1941–)

BEFORE

1900 French mathematician Louis Bachelier demonstrates that stock prices follow a consistent but random process.

1952 US economist Harry Markowitz proposes a method to build optimal portfolios based on diversifying risk.

1960s Capital Asset Pricing Model (CAPM) is developed to determine the correct rate of return for a financial asset.

AFTER

1990s Value-at-Risk (VaR) is developed to measure the risk of loss on a portfolio.

Late 2000s Global financial markets collapse.

During the 1960s the institutional foundations of the post-war world were steadily eroded. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required