Transaction Costs in Trading Strategies

Alyssa is a portfolio manager overseeing a diversified investment fund. She is looking to rebalance the fund's equity allocation after a recent strong performance in the tech sector. As she considers selling some of the tech stocks to allocate funds into underperforming sectors, she is particularly concerned about the transaction costs associated with these trades.

She remembers from her training that transaction costs can significantly impact the overall returns of a portfolio, especially when rebalancing frequently. Alyssa is considering three different trading strategies and their potential impact on transaction costs.