Investments: Instructor's Manual.

William F. Sharpe, an American economist and Nobel laureate, is best known for his groundbreaking contributions to financial economics, particularly in the areas of investment theory and risk management. As a professor at Stanford University, Sharpe developed the Capital Asset Pricing Model (CAPM), a seminal framework that explains the relationship between systematic risk and expected return, providing the intellectual foundation for modern portfolio theory and asset pricing. His 1966 creation of the Sharpe Ratio further advanced the evaluation of investment performance by offering a standardized measure of risk-adjusted returns, which remains a central tool for both academics and practitioners. Sharpe’s work, recognized with the 1990 Nobel Prize in Economic Sciences (shared with Harry Markowitz and Merton Miller), has had a lasting impact on both financial research and practice, shaping fields as diverse as corporate finance, portfolio management, and retirement planning.