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Because Six Sigma Involves the Elimination of Defects, It Can

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Because Six Sigma involves the elimination of defects, it can only be applied in manufacturing processes.


Definitions:

Portfolio Beta

A measure used to determine the volatility of a portfolio's returns relative to the overall market.

Expected Return

The anticipated profit or loss from an investment, calculated as an average of all possible outcomes weighted by their likelihood of occurrence.

Reward To Risk Ratio

A metric used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Risk Premium

The additional return expected by an investor for taking a higher risk.

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