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Eugene Fama


Who is Eugene Fama?:

Eugene Fama is the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Graduate School of Business. His website states that his research activities include "theoretical and empirical work on investments; price formation in capital markets; corporate finance." Fama's finance research is very well known in both the economics and investment community.

What is Eugene Fama Most Famous For?:

His research on the stock market, particularly in regards to the random walk theory and the efficient market hypothesis. There's a terrific interview of Eugene Fama that details his stock market research available on Dimensional's Online Library

Well-Known Articles Written by Eugene Fama:

Fama has written quite a few well known articles. The one that has influenced my thinking the most is "Risk, Return, and Equilibrium" which was published in the January 1971 issue of Political Economy. A list of the major publications of Eugene Fama is available here.

Books Written by Eugene Fama:

Eugene Fama has written a number of influential books. His book Foundations of Finance is one book I'm constantly referencing. His 1972 book The Theory of Finance was co-authored with Merton H. Miller, who won the Nobel Prize in Economics in 1990.

Graduate Students of Eugene Fama:

Unless I've missed somebody, Eugene Fama has not been a thesis advisor to any well known economists.

What Eugene Fama Will Be Remembered For:

His pioneering financial work. The efficient market hypothesis and the random walk hypothesis both heavily influence how we think about stock market fluctuations. Fama is one of the very few economists who are influential both within academia and outside of it.

Why Eugene Fama May Win the Nobel Prize in 2003:

I expect the award will be given to Fama. His work is just too influential to ignore. His name would not look out of place on a list of Nobel Laureautes. He would be a much higher profile selection than some of the other candidates and even many of the past winners.

Why Eugene Fama May Not Win the Nobel Prize in 2003:

The University of Chicago has already won far more Nobel Prizes in Economics than any other school, so the committee might not want to give another award to a professor at that school. Chicago hasn't won one in a few years, so this is not likely to be too much of a consideration this year.

Where Can I Learn More About Eugene Fama?:

There's quite a few sites which detail the work of Eugene Fama. Investor Home has an excellent article on the efficient market hypothesis and the random walk theory. The efficient markets hypothesis even has a homepage. Fama's homepage can be seen here.

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