black-litterman model

Must-Know Wealth Management Terminology for Software Developers: Part 2

Wealth Management terminology

In this post, I focus on the most popular mathematical models for portfolio optimization: Modern Portfolio Theory, Black–Litterman Model, and Fama–French Model. How may portfolio return, a variance of the portfolio, and efficient frontier be calculated using each of them? Understanding differences between the models may be crucial for software developers who create wealth management platforms.

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