William F. Sharpe

William F. Sharpe is an influential American economist known for his contributions to finance and investment theory. He is best recognized for developing the Sharpe Ratio, a measure that helps investors understand the return of an investment compared to its risk. This ratio is essential for assessing the performance of portfolios, enabling better investment decisions. Sharpe's work has been foundational in modern portfolio theory, guiding how assets should be allocated to maximize returns while minimizing risk. In 1990, he was awarded the Nobel Prize in Economic Sciences for his achievements in this field.