As Per the Risk and Return Evaluation Matrix for Six

question 41

Multiple Choice

As per the Risk and Return evaluation matrix for Six Sigma projects,projects that are home runs have a

• A)low risk factor and low return factor.
• B)high risk factor and low return factor.
• C)low risk factor and high return factor.
• D)high risk factor and high return factor

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Definitions:

Sinking Fund

A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date.