The comparison portfolio management between mean variance portfolio and black-litterman portfolio

Abstract

This study was conducted to compare the efficiency of stock portfolio management in the period from January 2019 to December 2021 with two different modeling approaches: the Mean Variance portfolio and the Black litterman portfolio (BLP).

              The result found that BLP has better diversification of portfolio risk than MVP and had a greater return than MVP for equal risk exposure ,As the BLP,may be because it can take investor’s perspective into consideration when making portfolio arrangements, making investor’s portfolios look at the future as well, not just from only data as same as MVP.