The Black-Litterman model is geared toward ____________ while the Treynor-Black model is geared toward ____________.
A) security analysis; security analysis
B) asset allocation; asset allocation
C) security analysis; asset allocation
D) asset allocation; security analysis
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The Black-Litterman model is primarily used for asset allocation, incorporating both market equilibrium and subjective views, while the Treynor-Black model is used for security analysis, particularly in constructing a portfolio by blending a passive market index fund with an actively managed portfolio.

The Black-Litterman Model Is Geared Toward ____________ While the Treynor-Black