The Basic Quality Tool That Kaoru Ishikawa Recognized That Identifies

question 87

Multiple Choice

The basic quality tool that Kaoru Ishikawa recognized that identifies potential causes of a problem while sorting them into categories is the

• A) check sheet
• B) cause-and effect diagram
• C) control chart
• D) pareto chart

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Definitions:

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification in an investment portfolio.

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.