Multifactor Models of Risk and Return Can Be Broadly Grouped

question 140

True/False

Multifactor models of risk and return can be broadly grouped into models that use macroeconomic factors and models that use microeconomic factors.

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Definitions:

ISO 9000 Certification

A family of quality management standards designed to help organizations ensure they meet customer and stakeholder needs within statutory and regulatory requirements.

External Failure Costs

Costs incurred when a customer receives a defective product.

Appraisal Costs

Costs related to identifying defective units before they are shipped to customers.

Optimum Quality Level

The level of quality at which the total cost associated with quality management (including prevention, appraisal, and failure) is minimized.