Style investing involves constructing portfolios in such a way to capture one or more of the characteristics of equity securities.

Question

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Style investing focuses on targeting specific characteristics or styles of equity securities in order to construct portfolios that align with certain investment goals or philosophies. These styles can include factors like value, growth, momentum, size, and more. By capturing these characteristics, style investors aim to achieve better risk-adjusted returns and outperform broader market benchmarks.

Style Investing Involves Constructing Portfolios in Such a Way to Capture