Posted: 11 Jan 2000 Last revised: 20 Mar 2016
Theory on the pricing of financial assets can be traced back to Bernoulli's famous St. Petersburg paper of 1738. Since then, research into asset pricing and derivative valuation has been influenced by a couple of dozen major contributions published during the twentieth century. These seminal works have underpinned the key ideas of mean-variance optimisation, equilibrium analysis and no-arbitrage arguments. This paper presents a historical review of these important contributions to finance.
JEL Classification: B00, G11, G12, G13
Suggested Citation: Suggested Citation
Dimson, Elroy and Mussavian, Massoud, Three Centuries of Asset Pricing. Journal of Banking and Finance, Vol 23, No 12, 1999, pages 1745–1769. Available at SSRN: https://ssrn.com/abstract=203109