1. Classic MVO vs AI HRP

Mean-Variance (MVO): Thinks like a race car driver. Fast but risky.

Hierarchical Risk Parity (HRP): Thinks like a structural engineer. Robust and stable.

2. Understanding Risk

VaR & CVaR: Your safety ratings for worst-case scenarios.

3. Subjective Views

Inputting a view (e.g., RELIANCE=20) blends your intuition with the data (Black-Litterman approach).