Eugene F. Fama
Born: 14 February 1939, Boston, MA, USA
Affiliation at the time of the award: University of Chicago, Chicago, IL, USA
Prize motivation: "for their empirical analysis of asset prices"
Field: financial economics
Prize share: 1/3
For many of us, the rise and fall of stock prices symbolizes economic development. In the 1960s, Eugene Fama demonstrated that stock price movements are impossible to predict in the short-term and that new information affects prices almost immediately, which means that the market is efficient. The impact of Fama's, results has extended beyond the field of research. For example, Fama's results influenced the development of index funds.