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Black-Litterman model is an asset allocation model that was first developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman after whom it was named. It was an attempt to modify the existing framework for asset allocation that was established by Harry Markowitz, known as the Mean-Variance Analysis or Modern portfolio theory. The key improvement that Black-Litterman model provides is that it addresses the views of the portfolio manager about the portfolio providing an additional qualitative input that adjusts the expected returns. The contribution to expected return of each of the portfolio asset about which a view is expressed is balanced against its contribution to overall portfolio risk.