Write up a document explaining the Markowitz model and Black-Litterman model. The document should be in PDF format. Note that Word 2010 and 2013 can save in / print to PDF format. About 500-1000 words (2-4 pages double-spaced) is fine. You can use the example in the Excel template if you feel that helps you explain more clearly. Note that detailed mathematical explanations or derivations are not required.

The document should explain i) what the Markowitz model would suggest that investors do (i.e., how one should invest to achieve a certain investment goal e.g., 15% expected return in the 5 country portfolio example, ii) limitations and pitfalls of the Markowitz model, iii) potential mitigations, iv) what the Black-Litterman model does, and v) why it does that.

The explanations should be at a level that could be understood by a finance professional not familiar with linear algebra and the Black-Litterman approach. The tone should be professional but as free of jargon as possible. I will award grades for clarity and accuracy of exposition and overall presentation of the document.