Finally there is someone who dares to say that the emperor has no clothes.
Optimisation or any modelling depends on assumptions. Just as the discount rate in a Discounted Cash Flow model greatly affects the net present value of the project, the returns and risks assumptions in a portfolio optimisation will greatly affect the optimal portfolio. This will not be the optimal portfolio if the return and risk assumption do not bear out.
Finally there is someone who dares to say that the emperor has no clothes.
Optimisation or any modelling depends on assumptions. Just as the discount rate in a Discounted Cash Flow model greatly affects the net present value of the project, the returns and risks assumptions in a portfolio optimisation will greatly affect the optimal portfolio. This will not be the optimal portfolio if the return and risk assumption do not bear out.