Assessment of Black Litterman portfolio optimization on Bulgarian Stock Exchange

Information technology implements its outcomes in development information services, which are available in virtual environments. The increase of usage of information services insists on the functionalities, offering by the information systems to provide complex treatment of the data. Thus, additional and new business relations are identified and can be taken in consideration in managing and decision making in complex systems. This research makes formalization to provide portfolio optimization of financial resources as information service. Part of the Modern portfolio theory for the case of Black-Litterman model is decomposed to sequential algorithm, which can be implemented by software in an information service. Due to its complex nature, the Black-Litterman model has been illustrated by application using real data of Bulgarian Stock Exchange. The paper's benefit concerns the definition of appropriate algorithm of portfolio optimization, considering its implementation in information service for taking decision in resource allocation and investments.