The Black-Litterman Model  is an advanced portfolio construction framework developed by Fischer Black and Robert Litterman at Goldman Sachs in 1990. It improves upon the traditional mean-variance optimization  model by incorporating both market equilibrium returns and an investor’s own subjective views on asset performance. This model helps investors generate more stable, realistic, and diversified portfolios , avoiding the extreme allocations often produced by traditional optimization...

The Treynor Ratio  is a key performance metric that evaluates how effectively an investment or portfolio generates returns relative to the systematic risk  it assumes. Developed by Jack Treynor, this ratio helps investors compare the efficiency of different portfolios or funds by analyzing returns per unit of market risk, represented by beta . What Is the Treynor Ratio? The Treynor Ratio is designed to assess risk-adjusted performance , focusing exclusively on market-related (systematic) risk...

A Fund of Funds (FOF)  is an investment vehicle that holds a portfolio composed of other funds rather than investing directly in individual securities. This approach provides investors with broad diversification, professional management, and simplified access  to multiple investment strategies or asset classes through a single investment product. What Is a Fund of Funds (FOF)? A Fund of Funds, often abbreviated as FOF, is designed to invest in a collection of other mutual funds, hedge funds,...