The ____________ model allows the private views of the portfolio manager to be incorporated with market data in the optimization procedure.
A)Black-Litterman
B)Treynor-Black
C)Treynor-Mazuy
D)Black-Scholes
E)none of the above.

Question

Quizplus · Accepted Answer

The Black-Litterman model allows the portfolio manager's private views to be incorporated with market data in the optimization procedure, helping to construct a well-diversified portfolio that enhances returns and reduces risks. The Treynor-Black model is a variation of the Black-Litterman model that incorporates the Treynor ratio as a performance measure, while the Treynor-Mazuy model is a different approach that utilizes market timing signals. The Black-Scholes model is used to price options. Therefore, the best choice for this question is A) Black-Litterman.

The ____________ Model Allows the Private Views of the Portfolio