Wells Fargo Bank supported Black, Jensen, and Scholes's research financially and sponsored the conference at which it was first presented, held at the University of Rochester (where Jensen then taught) in August 1969. Probably at Black's suggestion, McQuown's group at Wells Fargo saw a way to exploit the result of the research. If the anomalous finding was the result of restrictions on borrowing, perhaps it could be exploited by an investment company, which could borrow more easily and more cheaply than an individual could? The idea was to invest in low-beta stocks, with what the study by Black, Jensen, and Scholes had suggested was their high return relative to risk, and to use "leverage" (in other words, borrowing) to increase the portfolio's level of risk to somewhat more than the risk of simply holding the overall market, so also magnifying returns (McQuown interview).

Donald MacKenzie, An Engine, Not a Camera, loc. 395