17. Which of the following statements is true about "Smart Beta" strategies A. They are an important component of modern portfolio theory (MPT) B. Investors who use smart beta strategics do who use smart beta strategies do not worry about correlation because portfolios at combine several smart beta strategies are already well diversified. C. They outperform whether the market goes up or down. D. They are a form of top-down investing. E. None of the above statements is true. 18. The document that provides all relevant information required to manage an investor's portfolio called a; A. Trust indenture B. Offering memorandum C. Statement of strategic investment procedures D. Investment policy statement E Prospectus 19. The four-factor model of Fama, French, and Carhart differs from CAPM because it A. Places more emphasis on market risk B. Minimizes the importance of diversification C. Recognizes multiple unsystematic risk factors. D. Recognizes multiple systematic risk factors. E. Ignores macroeconomic risk factors. 20. A well-diversified portfolio is defined as A. A portfolio whose factor beta equals one. B. A portfolio with a non-systematic variance equal to zero. C. A portfolio that contains securities from at least three different industry sectors. D. A portfolio that holds an equal weighting in each security. E. A value weighted portfolio