Lisa is managing an actively managed equity portfolio that utilizes quantitative strategies. She has developed a custom model that predicts stock returns based on various factors, including price momentum, earnings revisions, and economic indicators. Recently, she has observed that certain stocks have shown strong momentum and have positive earnings surprises, leading her to consider increasing her exposure to them.

However, Lisa is aware of the limitations of quantitative strategies and considers the impact of transaction costs and market impact on her strategy. Additionally, she wonders how to best optimize the balance between risk and return in her portfolio while maintaining alignment with her investment objectives. Based on this scenario, which of the following is the most appropriate consideration for Lisa when applying her quantitative strategy to select stocks?