The optimal asset allocation and portfolio expected performance Introduction: BL model: The acronym BL refers to its creator’s name Mr. Fischer Black and Robert Litterman. It is a model created to help the analysts and the portfolio managers. This model measures the change of predicted return. These predicted returns are used to reconstruct the portfolio.

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Chapter 27, Problem 4PS

Summary Introduction

To compute: The optimal asset allocation and portfolio expected performance

Introduction:

BL model: The acronym BL refers to its creator’s name Mr. Fischer Black and Robert Litterman. It is a model created to help the analysts and the portfolio managers. This model measures the change of predicted return. These predicted returns are used to reconstruct the portfolio.

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