Considerations in Developing and Selecting Quantitative Strategies

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There are different models that can be used in combination with each other for sound judgement. The quantitative strategies in valuation models may defined as engineered investment strategies. Three characteristics are to be taken into consideration for developing these strategies. First, the strategy is based on sound theory. Secondly, the strategy is put in quantified terms. Thirdly and finally, it is to be determined how the strategy have worked in the past.

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