Updated with correction
The late Stephen A. Ross is to be honored with The Wharton-Jacobs Levy Prize for Quantitative Financial Innovation for his "pivotal'' work in the area of multifactor asset pricing.
Mr. Ross, who was the Franco Modigliani professor of financial economics and a professor of finance at the Sloan School of Management at the Massachusetts Institute of Technology, is being recognized for his 1976 paper, "The Arbitrage Theory of Capital Asset Pricing" in the Journal of Economic Theory. Mr. Ross died in March at age 73.
"Steve Ross was a groundbreaking theorist," said Geoffrey Garrett, dean of the Wharton School, University of Pennsylvania, in a Sept. 1 news release announcing the award. "It is an honor to celebrate his contributions to the field of investment management, specifically his pivotal work on (arbitrage pricing theory), with this year's Wharton-Jacobs Levy Prize."
At the time he wrote his innovative paper formulating his arbitrage-pricing theory, widely known as APT, Mr. Ross was a faculty member at the University of Pennsylvania and had a secondary appointment with the Wharton School's finance department, the news release said.
APT is still used as a framework for measuring multiple factors on an asset's return in the field of money management.
The award will be presented Sept. 15 during the fall conference of the Wharton School's Jacobs Levy Equity Management Center for Quantitative Financial Research.