Strategy capacity refers to how much capital a strategy can manage before performance declines.

Smart beta strategies are rule-based approaches.

Changes in index composition may require portfolio rebalancing.

Equally weighted indexes assign the same weight to each stock.

Paul Samuelson suggested that markets may be efficient at the macro level but inefficient at the micro level.

Holding fewer securities than an index can increase tracking error risk.

Pairs trading strategies are commonly used within statistical arbitrage strategies.

Alpha strategies attempt to generate excess returns relative to a benchmark.

Fundamental managers always hold more diversified portfolios than quantitative managers.

Fundamental strategies rely only on quantitative data.