Characteristic portfolio


 

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Characteristic portfolio

A portfolio which efficiently represents a particular asset characteristic. For a given characteristic, it is the minimum risk portfolio, with portfolio characteristic equal to 1. For example, the characteristic portfolio of asset betas is the benchmark. It is the minimum risk beta = 1 portfolio.



Characteristic portfolio

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Quality Characteristics

Quality Characteristics

Characteristics of the output of a process that are important to the customer. The identification of quality characteristics requires knowledge of the customer needs and expectations.


Key Quality Characteristic

Key Quality Characteristic

The most important quality characteristics. The KQCs must be operationally defined by combining knowledge of the customer with knowledge of the process. KQCs are measured to understand the actual performance of the process.




 
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