I took the course of portfolio management (which is much more complicated than CFA readings)in graduate school.I thought I can easily understand the majority parts of this reading but this exhibit really gets me confused.
Is there anyone who knows how the vector of “Black–Litterman: Equilibrium with Views (V)” be calculated? Does the vector have anything to do with the variance for views(0.001 to be specific)?
Any help will be very much appreciated