Black Litterman Exotic Beta Risk Parity Manuscript

  • 28 Feb 2016
  • By Efficient Capital Management

This paper demonstrates how Black-Litterman optimization, exotic betas, and varying efficient starting portfolios can work together, as opposed to being alternatives to each other. Two scenarios illustrate how different combinations of these three techniques can produce effective frameworks. Given the flexibility, robustness, and ease of implementation, these complementary frameworks can benefit a wide range of investors.

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