X-Nico

3 unusual facts about Eugene Fama


Eugene Fama

In recent years, Fama has become controversial again, for a series of papers, co-written with Kenneth French, that cast doubt on the validity of the Capital Asset Pricing Model (CAPM), which posits that a stock's beta alone should explain its average return.

Financial market efficiency

In the 1970s Eugene Fama defined an efficient financial market as "one in which prices always fully reflect available information”.

Share price

But some economists, for example Eugene Fama, argue that most of these patterns occur accidentally, rather than as a result of irrational or inefficient behavior of investors: the huge amount of data available to researchers for analysis allegedly causes the fluctuations.


Dimensional Fund Advisors

Dimensional hosts a forum where Eugene Fama and Kenneth French express their opinions on topics related to finance and current events.

John C. Bogle

Influenced by the works of Eugene Fama, Burton Malkiel, and Paul Samuelson, Mr. Bogle founded the Vanguard 500 Index Fund in 1975 as the first index mutual fund available to the general public.

Robert J. Shiller

On October 14, 2013, it was announced that Shiller had become a recipient of the 2013 Nobel Prize in Economics alongside Eugene Fama and Lars Peter Hansen.


see also