The ____________ Model Allows the Private Views of the Portfolio

question 27

Multiple Choice

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

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding financial costs.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets the company has available to build its business.

Net Investment

The total amount spent by a company on acquiring new assets, after subtracting disposals, intended to enhance the business’s earning capacity.