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CFA Level 3
Equity Portfolio Management

Advantages and Drawbacks of Quantitative Strategies in Active Equity Investing

Very Easy Active Equity Investing Quantitative Strategies

Active equity investing involves a variety of strategies aimed at outperforming the market. One popular approach within active equity investing is quantitative strategies, which utilize mathematical models and statistical techniques to identify potential investment opportunities.

Consider the following scenario: A portfolio manager is developing a quantitative strategy that relies on historical price movements and trading volumes to generate buy and sell signals for a selection of stocks. Discuss the advantages and potential drawbacks of employing this quantitative approach in active equity management.

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