Biography
Stephen R. Foerster, CFA, is a co-author, with Andrew Lo of MIT’s Sloan School of Management, of In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest, Princeton University Press, 2021, which won the Axiom Personal Finance category silver medal. His latest book is Trailblazers, Heroes, and Crooks: Stories to Make You a Smarter Investor, Wiley, September 2024. He is currently writing the authorized biography of William Sharpe, 1990 recipient of the Nobel Prize in Economics.
In light of the uncertainty dominating today’s markets and headlines, it’s worth revisiting some of the behavioral pitfalls that have tripped up investors for centuries.
The CAPM has its critics. Yet, the model, introduced by Bill Sharpe in 1964, remains front and center in academia and in practice.