Hello friends! This tutorial continues our financial calculations in MATLAB project. We will move from expected returns and covariance to portfolio allocation, performance measurement and a complete Black–Litterman update. The central idea is to begin with a reference portfolio and the returns implied by it, then combine those returns with explicitly stated views. We must also describe how uncertain the views are. A bar chart of implied returns alone does not complete the Black–Litterman calculation. We will retain the original project's teaching sequence and historical figures while correcting its treatment of backtesting and portfolio risk. The numerical example below uses hypothetical assets and assumptions for learning. Information about the earlier implementation remains on the origin ...