Beginning with the Step of Customer Needs and Expectations (Expected

question 57

Essay

Beginning with the step of customer needs and expectations (expected quality),identify and describe the remaining steps in the customer-driven quality life cycle. (hint: drawing a diagram may be helpful)

---

Definitions:

Multifactor Model

An investment model that seeks to describe the expected returns on a security based on various risk factors, providing a more comprehensive view than models based on a single factor.

Market Indexes

Benchmarks that track the performance of a specific basket of stocks, representing a particular sector or the market as a whole.

Chen, Roll, and Ross

Refers to a model developed by the economists Stephen A. Ross, Randolph W. Roll, and Edwin H. Chen that enhances the capital asset pricing model by including factors related to macroeconomic risk.

Multifactor Models

Financial models that use multiple variables to explain or predict asset prices and returns, incorporating factors like size, value, and momentum.